Tel-Aviv Stock Exchange to Launch Blockchain Securities Lending Platform
The Tel Aviv Stock Exchange (TASE) is reportedly developing a blockchain-based securities lending platform.
The platform is developed in collaboration with Isreali FinTech hub The Floor, Accenture and Intel. TASE aims to utilize blockchain technology for lending financial derivatives to investors and firms, Finance Magnate reported. The project was born during a blockchain hackathon in March 2017 and quickly transitioned to a concrete opportunity.
The project will be based on Hyperledger Sawtooth, an enterprise blockchain platform for building distributed ledger technology (DLT) applications. Intel will deliver a private ledger on Hyperledger Sawtooth that utilizes its Software Guard Extensions (SGX) technology to encrypt transaction data. SGX will keep data private among transaction participants and will provide closed DLT platform members with additional confidentiality capabilities. Accenture will provide consultancy services for the project.
The blockchain platform will function as a one-stop-shop for all securities lending activities, permitting access to larger securities volumes within shorter timeframes, even operating in shorter-term positions. It will harness some of blockchain’s primary advantages and features, such as direct peer-to-peer (P2P) transactions, smart contracts, and enhanced security through immutability.
Gil Devora, Co-Founder of The Floor, said the platform will be offered to global custodians, stock exchanges and other asset management firms looking to deploy a robust and operational system for securities lending or other asset classes.
“As an international FinTech innovation center we set a goal to promote and develop blockchain applications for the financial industry, and we believe this is just the beginning of using this platform for multiple use cases,” said Devora.
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