The London Stock Exchange Group (LSEG) is planning to launch a new digital markets business, according to a report by the Financial Times (FT).
The LSEG claimed the move would make it the first exchange to allow the trading of traditional financial assets on blockchain technology. Similar projects powered by blockchain exist, but the FT said these only cover part of the lifecycle of financial assets.
Head of capital markets at LSEG Murray Roos told the newspaper that the company had been exploring the possibility of a trading venue powered by blockchain for about a year. The exchange would not be built around crypto assets but would use the underlying technology to make the buying, selling and owning of traditional assets more efficient.
“The idea is to use digital technology to make a process that is slicker, smoother, cheaper and more transparent ... and to have it regulated,” said Roos.
The report said that LSEG aims to have the market operational within the next year subject to regulatory approval. Roos added that organisation had waited until blockchain technology was “good enough” and investors were on board with the idea.
“The ultimate goal is a global platform that allows participants in all jurisdictions to be able to interact with people in other jurisdictions completely abiding by rules, laws and regulations, potentially multiple jurisdictions simultaneously, which is something that hasn’t been possible in an analogue world,” Roos told the publication.
FStech has reached out to LSEG for comment.
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