The London Stock Exchange (LSE) Group is developing a blockchain-based trading platform for traditional financial assets, the Financial Times reported on September 4.
LSE’s head of capital markets, Murray Roos, revealed that after a year of diligent exploration, the company decided to move forward with its plan and has appointed Julia Hoggett to lead the initiative.
Roos clarified that the company’s primary focus is on leveraging blockchain technology to optimize the management and transactions of conventional assets, rather than venturing into cryptocurrency-related ventures.
The executive emphasized that this blockchain-powered initiative will be the first effort of its kind on the major global exchanges, providing a comprehensive ecosystem for investors.
Emphasizes the role of regulation
Ross further underlined how the conventional procedure complicates transactions involving individuals in different jurisdictions. Deploying digital technology, on the other hand, promises to streamline these processes, making them more efficient, cost-effective and transparent. He reportedly said:
“The ultimate goal is a global platform that enables participants in all jurisdictions to communicate with people in other jurisdictions, fully abiding by the rules, laws and regulations, possibly multiple jurisdictions at once, something that cannot be done in an analog system. has been possible. world.”
Meanwhile, he noted that the platform needs to be regulated in order to achieve this ultimate goal. To this end, LSE is actively involved in discussions with regulators in various jurisdictions, in addition to working with the UK Government and the Treasury.
Traditional companies are increasingly looking to blockchain technology
LSE’s interest in blockchain technology stems from increased adoption among traditional financial institutions.
Earlier this year, BlackRock and several other conventional asset managers filed applications for a spot Bitcoin exchange-traded fund with the US Securities and Exchange Commission. At the time, BlackRock CEO Larry Fink said cryptocurrencies like BTC were “digitizing gold.”
In addition, Swift, a leading banking messaging network, revealed how it partnered with Chainlink (LINK) and other financial institutions to complete a tokenization experiment involving transferring tokens across multiple blockchains.
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