Tel Aviv Stock Exchange to Roll Out Centralized Securities Lending Platform On Blockchain
Israel’s Tel Aviv Stock Exchange (TASE) announced on Tuesday plans to launch the first-ever of a centralized securities lending platform based on blockchain technology in the country. Back in 2018, BEG reported the stock exchange entered into a partnership with Accenture, Hyperledger, and Intel to launch the securities lending platform in a bid to improve the security of the transactions using smart contracts.
According to the latest press release, the Blockchain Securities Lending Platform will improve the financial systems in Israel by transforming the securities lending market onto distributed ledger technologies (DLTs), enabling direct lending between parties.
Currently, in Israel, institutions and securities traders lack a centralized securities lending market with all of these services only offered by intermediary banks and other third party financial institutions.
With the DLT-based securities lending, traders will have a ‘one-stop-shop’ to deposit and borrow all the major financial instruments available. This allows trading in greater volumes in shorter timeframes, improves the lending process, and lowers the cost of securities lending. Orly Grinfeld, EVP and Head of Clearing at TASE said,
“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 efforts in blockchain
The partnership with Accenture, Intel, and Hyperledger, among other partners, opens up a gateway for TASE to offer its customers a direct channel to transact digital securities. Accenture will help in the development of the blockchain smart contracts enabling the TASE to track and categorize transactions, including holdings, receipts, and settlements
TASE also joined the Blockchain Technology Partners (BTP), a group of blockchain developers helping the exchange build its flagship blockchain management product, Sextant.