# kaal:claim:3936876-007

**Claim.** The paper certificate system failed at scale: trust companies and intermediaries were overwhelmed by changing ownership records, and from 1967 to 1970 a reported $400 million in securities was lost or stolen.

**Type.** failure  **Support.** evidenced

**Holds when.**

- United States securities markets, 1967 to 1970

**Source quote.**

> The trust companies and intermediaries quickly became overwhelmed with changing ownership records, and from 1967 to 1970, a reported $400 million was lost or stolen in securities.

**From.** Wulf A. Kaal, Hayley Howe, *Custody of Digital Assets* (2021), II.1 Custody Requirements for Traditional Assets, page 8

**Cite as.** Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876

**Verify.** sha256 of source PDF `9bc0903d01910460298e754c451f027df4324367359800a98ee8e638d94aff55` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Howe%20-%202021%20-%20Custody%20of%20Digital%20Assets.pdf

**Failure mode.** paperwork crisis  (family: scalability-and-throughput-limit)

**Topics.** securities-law, defi

**Keywords.** paperwork-crisis, securities-history, custody-failure, intermediaries

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