London Stock Exchange CEO Thinks Blockchain is Optimal for Issuing Securities and Settlements
The Chief Operating Officer (CEO) of the London Stock Exchange (LSE), Nikhil Rathi, believes that blockchain could play an important role in issuing securities and settlement. He said that during an interview with CNBC on May 2.
LSE CEO Believes Blockchain Could Be Useful
The CEO of the LSE talked during an interview with the CNBC about how distributed ledger technology (DLT) could be used in the stock market of the United Kingdom. Rathi has also mentioned that he is confident about DLT and how these applications can be used in the issuance process and settlement.
There are other stock exchanges around the world that have already been working with blockchain technology. For example, the Australian Securities Exchange (ASX) is working with DLT to build from the ground its CHESS settlement system.
Rathi explained that the adoption of this technology in capital markets must be carried out with caution. The cryptocurrency and blockchain industries have usually been promoting these technologies in an extreme way. Mr. Rathi has also mentioned that he encourages competition and also innovation in the capital market business.
Rathi said during his conversation with CNBC:
“You can certainly see distributed ledger technology having an application in the issuance process. I can see that technology being used in settlement too.”
This is not the first time that LSE works with the blockchain industry. In the past, the London Stock Exchange Group (LSEG), the parent company of the LSE, invested $20 million in a funding round in the fintech startup Nivaura, which is developing the first crypto and blockchain-settled bond in the market.
Another financial market, the Gibraltar Stock Exchange (GSX) is currently allowing the listing of tokenized bonds, securities and funds. Meanwhile, the Swiss SIX stock exchange has accepted blockchain and crypto indices to be launched on its market.
Nonetheless, the LSE is not working with blockchain technology and has no plans to start using it in the near future.