# History in 3 Minutes ### 1970s: The Foundation Salomon Brothers packaged the first mortgage-backed securities, turning illiquid bank loans into tradable instruments. The Black-Scholes model (1973) gave the industry a mathematical framework for pricing options, enabling the first generation of hybrid products. ### 1980s: Innovation Investment banks launched structured notes combining bonds with embedded options linked to equities, commodities, and currencies. Merrill Lynch, Salomon Brothers, and Goldman Sachs built entire divisions around designing bespoke risk-return profiles for institutional clients. ### 1990s: Institutionalization Structured products entered the mainstream. Principal-protected notes, autocallables, and range accruals became standard tools for private banks and pension funds. The global market crossed $1 trillion in notional outstanding. ### 2000s: Overengineering and Crisis CDOs, CDO-squareds, and synthetic credit instruments pushed complexity past the point of transparency. The 2008 financial crisis exposed not a failure of structured finance itself, but a failure of opacity. Instruments were sound in design. The problem was that nobody could see inside them. Rating agencies, counterparties, and regulators all operated on trust rather than verification. ### 2010s: Regulation and Recovery MiFID II, Dodd-Frank, and Basel III imposed disclosure requirements, capital reserves, and standardized risk reporting. Simpler, more transparent products regained institutional confidence. The market rebuilt around verifiability. ### 2020s: Digitization Smart contracts began replicating payoff logic with real-time transparency. DeFi protocols experimented with structured vaults and automated option strategies. But these remained niche, limited by fragmented liquidity and primitive oracle infrastructure. ### What This Means for Stratium The history of structured finance is a fifty-year arc toward the thing that onchain infrastructure provides natively: transparency. Every crisis, every regulatory reform, every product redesign pushed the industry closer to verifiable, auditable payoffs. Stratium does not retrofit structured products onto blockchain. It builds them where they should have been built from the beginning: on open, composable, cryptographically verifiable infrastructure. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.stratium.xyz/about-stratium/history-in-3-minutes.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.