LSE Group aims to become the first major global stock exchange to provide a fully blockchain-supported ecosystem for investors.
The London Stock Exchange (LSE) Group has revealed plans to develop a trading platform that utilizes blockchain technology for traditional financial asset transactions. This marks a significant move for the company as it aims to revolutionize how these assets are held, bought, and sold.
According to the Financial Times report shared on September 2nd, over the last year, the LSE Group has been conducting in-depth research to assess the viability of a blockchain-powered trading venue.
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Murray Roos, LSE Group's head of capital markets, confirmed that the ongoing evaluations have reached a stage where it makes sense to proceed with the initiative.
Though the project will leverage blockchain technology, Roos emphasized that the LSE Group will not venture into cryptocurrency trading. Instead, the platform aims to use blockchain to make transactions involving traditional assets "slicker, smoother, cheaper, and more transparent."
Notably, the venture will operate under regulatory oversight, which is expected to bolster investor confidence.
Furthermore, Roos added that the LSE Group purposely delayed the implementation until public blockchain technology met their stringent criteria and until they felt investors were adequately prepared for the shift.
According to Ross, if everything goes as planned, LSE Group is set to be the first major global stock exchange to provide a fully blockchain-supported ecosystem for investors.
The news from the LSE Group comes at a time when other institutions are also showing increased interest in blockchain. Recently, Lufthansa Airlines announced the launch of its non-fungible token (NFT) loyalty program on the Polygon network, allowing NFT holders to reap benefits like lounge access and flight upgrades.
The LSE Group’s planned venture into blockchain-based trading for traditional financial assets indicates a growing acceptance of the technology in mainstream financial markets. As various sectors, from banking to airlines, are also exploring blockchain applications, the LSE Group's platform, if successfully executed, could set a precedent for the integration of digital technology in conventional asset trading.
