These solutions in my mind are better described as distributed systems that allow independent verification and audit of data and transactions from within the system itself.
This is useful when the data being shared involved spans multiple entities in terms of responsibility, ownership, value, and other impacts. Rather than having to rely on other mechanisms of verification the system itself is able to provide that verifiability at scale.
Essentially you're using a technology layer, which is a collection of existing concepts put together in a somewhat novel use, to disintermediate more expensive verification solutions.
I think it makes a lot of sense if you examine the value chain of securities lending (from creation of the instrument, custody, to lending, custody transfer, and finally audit and compliance).