CUSTODY CHAINS AND ASSET VALUES: WHY CRYPTO-SECURITIES ARE WORTH CONTEMPLATING EVA MICHELER* ABSTRACT. Computerisation facilitates instantaneous and direct links between all of us in our work and social lives. At the same time, and counter-intuitively so, securities are increasingly held indirectly through chains of custodians that operate between issuers and investors. This disconnects investors from issuers and can significantly reduce the value of assets. The regulatory framework does not prevent this effect. UK-regulated holders of client securities should be required to hold these directly in the name of the investor. At an international level, it is worth asking whether the technology underlying bitcoin and other cryptocurrencies can be used to create an un-intermediated securities ledger connecting investors and issuers directly. KEYWORDS: shares, debt securities, securities, interests in securities, custodian, depositary, client asset rules, cryptocurrency, financialisation. I. INTRODUCTION Computerisation arrived with the promise of better connecting people. While it has delivered instantaneous and direct links between all of us in our work and social lives, it has done no such thing for our financial assets. On the contrary, and counter-intuitively so, introducing electronic securities has increased indirect patterns of holding securities and thereby disconnected investors from financial assets and issuers. Securities used to be held directly with names of inve