London Stock Exchange to pioneer blockchain-based trading venue for traditional assets London Stock Exchange to pioneer blockchain-based trading venue for traditional assets
LSE does not intend to build anything around cryptocurrencies despite its dalliance with blockchain technology.
2 min read
Updated: Sep. 4, 2023 at 10:40 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The London Stock Exchange (LSE) Group is developing a blockchain-based trading venue for traditional financial assets, the Financial Times reported on Sept. 4.
LSE’s head of capital markets, Murray Roos, revealed that the company decided to move forward with its plan after a year of diligent exploration and has appointed Julia Hoggett to lead the initiative.
Roos clarified that the company’s primary focus lies in harnessing 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 is set to become the inaugural endeavor of its kind among major global stock exchanges, providing a comprehensive ecosystem for investors.
Highlights the role of regulation
Ross further underlined how the conventional procedure complicates transactions involving individuals across various jurisdictions. In contrast, leveraging digital technology promises to streamline these processes, rendering them more efficient, cost-effective, and transparent. He reportedly said:
“The ultimate goal is a global platform that allows participants in all jurisdictions to be able to interact with people in other jurisdictions completely abiding by rules, laws and regulations, potentially multiple jurisdictions simultaneously, which is something that hasn’t been possible in an analogue world.”
Meanwhile, he noted that the platform has to be regulated to achieve this ultimate goal. To this end, LSE is actively engaged in discussions with regulatory bodies across various jurisdictions, alongside engaging with the UK government and Treasury.
Traditional firms increasingly eye blockchain technology
LSE’s interest in blockchain technology is coming on the heels of an increased adoption rate among traditional financial institutions.
Earlier in the year, BlackRock and several other conventional asset managers submitted applications for a spot Bitcoin exchange-traded fund to the U.S. Securities and Exchange Commission. At the time, BlackRock’s CEO Larry Fink said cryptocurrencies such as BTC were “digitizing gold.”
Additionally, Swift, a prominent bank messaging network, revealed how it collaborated with Chainlink (LINK) and other financial institutions to complete a tokenization experiment that involved the transfer of tokens across multiple blockchains.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Chainlink
$22.2558
Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
