Israel will have the first of its kind Central Blockchain Securities Lending Platform starting in November 2020. The Tel-Aviv Stock Exchange (TASE) published this news and claimed to provide groundbreaking innovative financial products using the new platform.
Blockchain Helping Stock Exchanges
Securities Lending is one of the most common financial activities in the markets. Israel doesn’t have a lending platform to provide service for interested users. They currently use alternatives like inter-bank solutions.
When there is no central and authorized platform for users, knot many of investors show interest to enter the market. As a result, the Securities Lending market in Israel is not matured yet.
A Central Blockchain Securities Lending Platform in Israel will help investors to lend their securities directly. It means a more straightforward process for them that can attract many new users to the market.
There will be more financial instruments in the coming platform that has experienced initial tests since Mach 2020, according to TASE press release. All of the TASE members have had access to the test system to review the features and modify their systems to integrate with the platform more accessible.
Distributed Ledger Technology (DLT) is the fundamental component in the upcoming TASE Securities Lending Platform. The exchange will use the basic features of blockchain technology like p2p transactions and smart contracts to lay the foundations of the new platform. The natural security and transparency of blockchain technology is another reason that TASE uses DLT.
The decision from TASE executives to use blockchain technology as the critical element of the lending platform can be a significant milestone for the industry. When a big stock exchange decides to use the novel technology, many regular users and enterprises will become familiar with it.
“The Tel Aviv Stock Exchange is proud to present this first-of-a-kind lending pool, a safe, cutting-edge and state of the art platform. The Blockchain technology will present a new level of safety for securities lending and will support growth for transactions based on this new platform. TASE is a global financial innovation leader, and strategically pursues the technological advancement of the capital market.” said Orly Grinfeld, EVP and Head of Clearing at TASE.
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