The Tel Aviv Stock Exchange (TASE) has announced plans to launch a blockchain based securities lending platform in November.
This was made known via an announcement by TASE on July 28. Based on the announcement TASE said the blockchain based securities platform will be vital for the country’s capital markets, bearing in mind that it lacks a central system for securities based lending.
TASE’s blockchain-based lending pool will meet the needs of investors in the country’s capital markets by concentrating all securities lending activities under one roof and enable direct borrowing among investors across a range of major financial instruments.
Has there been a test run of the platform?
Development for the platform initially started in May, 2018 as reported by Cointelegraph.
The platform is built using Hyperledger Sawtooth and developed in partnership with Israeli fintech firm The Floor, global professional services company Accenture, and Intel.
TASE launched a trial run of its blockchain based securities platform in March of this year. During the testing period members were able to execute loan transactions. Based on these results, the exchange is adjusting its systems in the run-up to November.
In a statement, Orly Greenfeld — senior vice president and director of the TASE clearing department — said:
“Blockchain technology will enable securities lending trading while securing information and supporting the increase in the number of transactions.”
Some major advantages of the platform highlighted by TASE during the testing period includes:
- Support for peer to peer transactions
- Smart contract functionality
- Increased levels of security through the use of blockchain
- Cheaper operational costs.