Executives at the LSE Group have been exploring how blockchain can enhance traditional asset trading.
According to recent reports, the London Stock Exchange (LSE) Group has intentions of developing a blockchain-based platform that will provide access to traditional financial assets.
According to a Financial Times report, the corporation has been researching the prospects of a blockchain-based trading platform for a year. LSE Group’s head of capital markets Murray Roos said the corporation had opted to press forward with its blockchain research.
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Roos also stated that they will not build cryptocurrency products. They will use blockchain technology to hold, buy, and sell traditional assets more efficiently.
The goal, according to Roos, is to employ digital technology to provide a process that is “slicker, smoother, cheaper and more transparent” for traditional assets. The LSE Group leadership said they would regulate it.
Roos additionally stated that the LSE Group waited until investors were ready and public blockchain technology was good enough before starting. Roos stated the LSE Group will be the first major global stock exchange to give investors an end-to-end blockchain-powered ecosystem if the plan goes through.
Other traditional financial institutions are also considering blockchain technology. On August 31, the banking messaging network SWIFT released a paper on how it can integrate with blockchains to address the issue of interoperability between multiple blockchain networks.
An airline has integrated blockchain-based technologies with financial infrastructures. Lufthansa Airlines started a Polygon NFT loyalty program on Aug. 31. NFT holders can get lounge access and flying upgrades.