The London Stock Exchange (LSE) dates back to 1801. It is known for hosting companies from all over the world, providing important stock market data in Europe. It also collaborates with exchanges in Asia and Africa to make global financial markets more accessible.
The second oldest stock exchange is embarking on a new path, aiming to create a blockchain-based marketplace for traditional assets. This would make it the first major exchange to venture into blockchain technology.
Building Transparency In Finance
According to the Financial Times, Murray Roos, the head of Capital Markets at LSE Group, is exploring the possibilities of blockchain. However, he put out a disclaimer that the exchange has no plans to develop infrastructure for cryptocurrencies.
Roos made it clear that the main focus is using blockchain technology to improve traditional stock markets. London Stock Exchange intends to avoid the risk associated with cryptocurrency investments.
The intention behind this initiative is to harness the well-established capabilities of blockchain. Bitcoin is an area of focus as it has elevated transparency and efficiency within the financial sector.
The LSE Group is exploring the idea of establishing a distinct organization for its digital markets division with the goal of getting it up and running within the coming year. Ongoing discussions are being conducted with various regulatory bodies to ensure the sustainable growth and adherence to regulations for this platform.
While LSE is exploring blockchain technology to enhance traditional asset markets, Tel Aviv Stock Exchange also focused on a blockchain-based platform to facilitate cryptocurrency exchange services. The initiatives by different stock exchanges signify the growing interest and diversification within other arms of the financial sector.