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Securities Lifecycle

Definition

The securities lifecycle refers to the entire sequence of stages a financial instrument undergoes from its creation to its retirement. In the context of tokenized securities or digital assets, this includes issuance, trading, clearing, settlement, custody, and corporate actions like dividend payments or voting. Blockchain technology has the potential to streamline and automate many of these stages through smart contracts, reducing intermediaries and operational costs. The digital representation of traditional securities aims to enhance efficiency and transparency throughout their operational existence.