London Stock Exchange Launches New Blockchain-Based Platform
The United Kingdom continues to adopt blockchain technology. The London Stock Exchange intends to use blockchain's potential to create a platform for trading traditional financial assets.
LSE is set to become the first major exchange to offer traditional financial services based on blockchain. Murray Roos, the Head of Capital Markets at the LSE Group, said the company has been testing the capabilities of blockchain for about a year. And while the technology is primarily associated with cryptocurrencies, the scope is much broader. LSE does not intend to introduce cryptocurrency, instead it will use blockchain technology to improve the performance of the traditional asset sector.
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London Stock Exchange to create traditional assets trading platform on blockchain
Blockchain will enable crucial trading functions for traditional assets. This also includes global transaction parties. The process will be regulated. The exchange will use distributed ledger technology, and the head of the London Stock Exchange, Julia Hoggett, will manage the new platform.
"The idea is to use digital technology to make a process that is slicker, smoother, cheaper, and more transparent," Roos said.
LSE's new solution differs from others on the market as it covers all investment processes. The management highlighted that the new platform is not going to compete with the traditional exchange. Instead, it will complement it. The platform will go public next year if it gets approval from local regulators.
In 2017, the exchange said it would use blockchain to digitize the issuance of securities for SMEs in Europe. And in 2019, the exchange invested in Nivaura, which deals with tokenization of bonds.
