# kaal:claim:3411110-007

**Claim.** Because direct ownership on a blockchain removes the need for the Depository Trust Corporation to hold the certificate and for a broker to record beneficial ownership, agency costs can be cut and ownership clarity increases.

**Type.** mechanism  **Support.** argued

**Holds when.**

- direct registration of ownership on the ledger
- no third party custodian

**Source quote.**

> By establishing a system that makes the DTC obsolete, agency costs have the potential to be cut and clarity surrounding ownership will increase.

**From.** Wulf A. Kaal, Samuel Evans, *Blockchain-Based Securities Offerings* (2019), III.1 Cost Reduction, page 14

**Cite as.** Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

**Verify.** sha256 of source PDF `c7626eeb7642045b79f8745df1f7232a8fe8bc44a1f7e87b592850e35b392b50` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Evans%20-%202019%20-%20Blockchain-Based%20Securities%20Offerings.pdf

**Topics.** corporate-governance, decentralization, defi

**Keywords.** dtc, agency-costs, disintermediation, ownership, custody

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