One of the oldest stock exchanges in the world, based in London, will reportedly use a separate entity for its planned blockchain-based markets business
As reported by the Financial Times, the London Stock Exchange operator LSE Group is currently in talks with the UK government and regulators to offer traditional financial assets trading on the blockchain platform.
Although blockchain technology is commonly used for cryptocurrency trading, LSE Group’s Head of Capital Markets Murray Roos has explicitly stated that the LSE project will only use it to enhance buying, selling and holding traditional assets.
Reportedly, the blockchain-based markets business will function through a separate business entity. Roos added that the company had been examining blockchain-powered trading potential for about a year, waiting for a time when both investors and the technology would be ready to meet the set objectives.
Lately, blockchain has been increasingly used for non-crypto transactions and purposes. For instance, in July, Commerzbank became the first German Bank to successfully carry out blockchain-based Letter of Credit (LC) transactions for its clients at its Singapore and Shanghai branches on the digital trade finance platform Contour.
Meanwhile, JPMorgan has employed blockchain-based trading for settlements on dollar transactions in the newest international financial center of India, as well as payments in euros for corporate clients.
