By David J. Kappos, D. Scott Bennett, Michael E. Mariani, Jeffrey M. Amico,
Vincent Molinari, Christopher Pallotta, Annemarie Tierney, and Peter Chiaro
A digitized security is a digital representation of a security that can be programmed to automate certain functions and whose ownership is traced in real time using a distributed ledger.1 The first generation of digitized securities being issued today are effectively traditional securities enveloped in a digital wrapper. That should not suggest that their potential impact is limited, however. As in the shift from “snail mail” to email, the content of the underlying information does not change. However, like email, digitization offers significant advantages
over the legacy paper-based system.