Primary market automation refers to the use of technology, particularly distributed ledger technology and smart contracts, to streamline and digitize the issuance and initial sale of financial instruments. This process automates various stages, including investor onboarding, subscription management, and the allocation of securities. Automation aims to reduce manual errors, accelerate transaction speeds, lower issuance costs, and enhance transparency in capital raising activities. It transforms traditional, often paper-intensive, primary market operations into efficient digital workflows.
Context
The digital asset industry is actively exploring primary market automation for the issuance of tokenized securities and other digital assets. This approach allows for programmable features within the assets themselves, such as automated compliance checks and dividend distributions. News in this area often reports on platforms and protocols enabling the digital issuance of bonds, equities, and funds, aiming to create more efficient and accessible capital markets for a wider range of participants.
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