The London Stock Exchange Group has drawn up plans for a new digital markets business that will offer extensive trading of traditional financial assets on the blockchain technology known to power cryptocurrencies, the Financial Times reported.
The company considered the potential of a blockchain-powered trading venue for about a year and reached a “tipping point” where it decided to move forward with plans, Murray Roos, head of capital markets at the LSE group, said in a statement. an interview with PIE.
The blockchain is a digital ledger that records and verifies transactions.
The LSE is not building anything around crypto assets, but is looking to use the technology that underpins tokens like bitcoin to improve the efficiency of buying, selling and holding traditional assets, Roos told the Financial Times.
“The idea is to use digital technology to make the process more fluid, economical and transparent. […] and regulate it. The idea is to use digital technology to make the process smoother, cheaper and more transparent… and regulate it.
LSEG plans to use a separate legal entity for digital marketplaces business, according to Monday’s report, adding that it expects to have it up and running within the next year, subject to regulatory approvals.
The company is already in talks with regulators in several jurisdictions, as well as the UK government and Treasury, the report added.
The London Stock Exchange Group did not immediately respond to a Reuters request for comment.
The move comes at a time when several traditional financial institutions are talking about the potential of blockchain to streamline the process of issuing and trading financial assets.
Thomson Reuters, the parent company of Reuters News, has a minority stake in LSEG, which pays Reuters for the news.
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