Cede & Co.: The Custodian of American Finance

The Mysterious Keeper of America's Wealth

Cede & Company, often shrouded in mystery, is a behemoth in the financial world. It holds a staggering majority of publicly traded stocks and bonds in the United States, casting a shadow over the true ownership of these assets.

Delving into Cede & Co.'s Dominance

Cede & Co. acts as the central custodian for the Depository Trust & Clearing Corporation (DTC), the backbone of the American equity market. When investors buy stocks or bonds through a broker, the DTC issues a holding record in the name of Cede & Co., effectively making it the registered owner.

This arrangement has profound implications. Cede & Co.'s vast holdings give it immense power over corporate decision-making and influence in financial markets.

Centralized Control vs. Decentralized Revolution

Cede & Co.'s dominance raises questions about the true nature of ownership and the potential for conflicts of interest. While it facilitates efficient trading, it also introduces a layer of centralization that some argue undermines transparency and accountability.

In contrast, decentralized finance (DeFi) is emerging as a challenger to the traditional CeFi system. DeFi relies on cryptocurrencies and smart contracts to provide alternative mechanisms for trading and ownership, offering greater transparency and reducing reliance on intermediaries like Cede & Co.