![Crypto Terms Glossary: What is Traditional Value Chain? Crypto Terms Glossary: What is Traditional Value Chain?](/img/133/1458/what-is-traditional-value-chain-sm.webp)
The traditional value chain is a system that is used for creation, distribution, trading, clearing and settlement, custody, and other financial services within the securities value chain. Though it has evolved over time, and has been used in the financial industry for decades, it is becoming increasingly apparent that the traditional value chain is flawed because it is less transparent, efficient, and equitable than it needs to be. Presently, a new approach called the tokenization value chain is advancing to enable a more viable approach for future investment paradigms and financial products and services across the globe.