In the world of crypto and digital assets, the middleman is often seen as a figure of scorn, as the dream of decentralization is touted. However, the reality is that intermediaries continue to haunt every corner of this landscape, whether we like it or not.

Some of these intermediaries extract rent for their services, while others maintain order in the chaos. But whenever there's a hiccup, a wallet vulnerability, or a glitch in a smart contract, someone must step in to update and secure the system.

As markets mature, the hope is that the role of these intermediaries becomes less overpowering. But their presence never truly vanishes; they are merely transformed. As we venture into the tokenization of real-world assets, the concept of intermediaries takes on new dimensions, not just in technical terms but in the realm of regulation.

Central Securities Depositories (CSDs) are poised to persist and even become more central than ever before. Their larger, more globally connected counterparts, the International CSDs, are also expected to take on an even more crucial role.

Source: https://www.coindesk.com/opinion/2024/09/11/the-middlemans-shadow-in-the-tokenization-complex/

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