Crypto Solves a Decades-Old Problem That Traditional Securities Markets Still Haven't Fixed

Skeptics like to say crypto has no real use cases. But what if it solves a decades-old problem that traditional securities markets still haven't fixed

Crypto skeptics like to say the industry lacks use cases. But what if it solves a decades-old problem that traditional securities markets still haven’t fixed—how to directly, efficiently, and trustlessly own and trade assets?

Today’s securities transactions are deceptively complex. A trade that should just involve a buyer and seller instead passes through a maze of intermediaries—brokers, dealers, exchanges, market makers, clearinghouses, custodians, and transfer agents—each extracting value and introducing friction.

This elaborate system isn’t the product of natural market evolution. It developed out of necessity during the 1960s “paperwork crisis,” when a boom in trading volume overwhelmed Wall Street’s manual systems.

Back then, trading meant physically exchanging paper certificates. As volume surged, back-offices buckled under the burden, prompting the New York Stock Exchange to shorten trading hours and close one day a week just to process trades. Brokerages collapsed. Client dividends went unpaid. Securities were lost and misplaced.