The London Stock Exchange Group (LSE) has unveiled its vision to establish a blockchain-based trading platform for traditional financial assets. After a year of meticulous examination, Murray Roos, the Director of Capital Markets at LSE Group, revealed to the Financial Times that the company had reached a pivotal moment where it decided to propel its blockchain aspirations forward.
Not Cryptocurrency, But Blockchain Efficiency
Roos was quick to clarify that their venture was not centered around cryptocurrencies. Instead, their aim is to harness blockchain technology, renowned for powering cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), to enhance the efficiency of transactions involving conventional assets.
The primary objective is to employ the capabilities of the technology to boost the company’s operations around traditional assets while adhering to regulatory standards. He said,
“The idea is to use digital technology to make a process that is slicker, smoother, cheaper, and more transparent, and to have it regulated.”
Moreover, Roos emphasized that LSE Group had been prudent in its approach. They waited until they were confident that public blockchain technology had matured sufficiently and that investors were ready for such a leap.
If their plans materialize, LSE Group will become the first major global stock exchange to offer a comprehensive, end-to-end blockchain-powered ecosystem for investors. Unlike previous blockchain-powered projects, LSE’s vision spans the entire lifecycle of financial assets, encompassing issuance, trading, reconciliation, and settlement.
Meanwhile, the LSE Group’s Director of Capital Markets made it clear that their digital market venture would not compete with LSE’s traditional business. Their intention is not to bolster their equities markets business, which has faced challenges due to a decline in initial public offerings in recent years. Instead, they aim to continue the spirit of innovation that London has long been known for.
LSE Group Has a Global Vision
According to the statements, LSE Group’s ambition extends beyond borders. They aspire to create a global platform that enables participants from various jurisdictions to interact seamlessly while adhering to respective rules and regulations.
This level of global, multi-jurisdictional interaction has been a challenge in the analog world but becomes feasible in the digital realm, provided it gains the support of multiple regulators.