Equity markets are still using outdated processes, leading to slow settlements and reconciliation traps. Onchain equity lending offers real-time settlement, programmable collateral, and transparent rule enforcement. Global regulators are paving the way for tokenized settlement backed by central bank money. The industry is moving towards tokenized assets and money under public law oversight.

Risks in the current equity lending system are discovered too late, leading to problems spreading. Automation can enforce rules upfront to ensure loans meet conditions. Tokenized reserves and government bonds can reside on platforms with conditional, atomic settlement. Regulation is not a roadblock but a green light for blockchain market infrastructure.

Onchain equity lending eliminates delays and counterparty risk, enforcing transparency and compressing systemic risk. The market is already shifting towards this model, with regulatory frameworks catching up and institutional interest growing. The decision to move equity lending onchain is becoming less abstract and more necessary.

Read more at Cointelegraph: Put Equity Lending Onchain, Or Get Out Of The Way