London Stock Exchange (LSE) plans to use the blockchain for issuing shares and processing transactions. LSE Chief Executive Officer Nikhil Rathi said the technology has a number of advantages over the existing system.
According to Rathi, companies will issue tokenized securities in the blockchain. The founder of Morgan Creek Digital, Anthony Pompliano, is confident that in the future all securities, currencies, and commodities will be subject to tokenization. Using the blockchain, you can also speed up the process of making a deal of buying and selling stocks and increase the level of security of trading operations.
Abra just announced that you can now invest in stocks, ETFs, and other cryptocurrencies all on top of the Bitcoin network.
Every stock, bond, currency, and commodity will be tokenized.
No longer a question of “if,” but rather “when” 🚀
— Pomp 🌪 (@APompliano) 6 февраля 2019 г.
The director of LSE believes that the efficiency of the distributed databases technology is confirmed by the interest to the blockchain from commercial enterprises. In particular, we are talking about the Australian Stock Exchange (ASX), which is going to launch a blockchain system by 2021. The London Stock Exchange also does not remain “behind” technological progress. In February, the company invested in a startup Nivaura, which is creating automated tokenized bonds. In April, LSE together with Nivaura issued shares in the form of tokens worth $3.9 million in the LSE Turquoise test site.
American financial companies also drew attention to the crypto industry. The New York Stock Exchange and Nasdaq are going to launch Bitcoin (BTC) futures trading, while JP Morgan Bank has created and successfully tested its own stablecoin JPM Coin, which will be used for instant money transfers between corporate accounts.
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