London Stock Exchange is Exploring Blockchain Tech: FT
- The London Stock Exchange Group is exploring the integration of blockchain technology.
- The firm has given itself a year to investigate and debut a trading venue powered by blockchain.
- The LSEG is “definitely not building anything around crypto assets, said Murray Roos, a top-level exec.
- Nasdaq had announced plans to launch a crypto custody service but has put its plans on hold.
The London Stock Exchange (LSE) has announced that it is currently exploring the viability and usefulness of blockchain technology and aims to debut “an end-to-end digital market ecosystem to raise and transfer capital across asset classes.” The LSE Group is the latest entity to display crypto and blockchain-friendly ambitions, and it seems that the fundamentals cannot be more clear.
As per a report from the Financial Times, Murray Roos, the head of capital markets at the London Stock Exchange Group, confirmed that the firm has given itself a year to look into the possibility of launching a blockchain-powered trading venue. While it was confirmed that the 300-year-old stock exchange is “definitely not building anything around cryptoassets,” the LSE Group is considering the integration of blockchain technology.
“The idea is to use digital technology to make a process that is slicker, smoother, cheaper, and more transparent, and to have it regulated,” Roos said.
It is also important to mention here that the London Stock Exchange does not want anything to do with crypto but wants the technology that powers Bitcoin and other cryptocurrencies to enhance the efficiency of traditional asset transactions, including buying, selling, and custody.
The new venture will be led by Julia Hoggett, the head of one of the units within the broader London Stock Exchange group, as per the Financial Times. Roos confirmed that his firm has reached an “inflection point” and has opted to advance plans for integrating blockchain technology.
Roos further added that if everything goes as planned, the LSE Group would become the first large global stock exchange to offer an “end-to-end” blockchain-powered ecosystem to investors.
“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.”
Interestingly, Nasdaq also revealed plans to debut a crypto custody solution but decided to put the developments on hold due to regulatory uncertainty in the United States. Industry members have called for the election of Republican candidates for pro-crypto laws.