Blockchain technology has been of great interest to participants in the financial sector. The Tel Aviv Stock Exchange, or Tase, will soon launch its blockchain-based securities lending platform.
Securities Lending And Blockchain
Bringing more transparency and efficiency to the financial sector is crucial. How this will be achieved, will become more apparent in the years to come. One possible solution to explore is the use of blockchain technology. With its efficient nature and auditability, it offers many improvements over existing systems.
For the Tel Aviv Stock Exchange, blockchain technology has a lot of merit. So much even that a new system will be put in place over the coming weeks. It is designed to improve securities lending activities. More specifically, participants will gain access to much larger volumes within shorter time frames.
Harnessing the benefits of distributed ledgers will play a crucial role in this regard. Direct peer-to-peer transactions and smart contracts are bound to make a meaningful impact. The native immutability of blockchain technology will also bring an extra level of security to this new platform.
Tel Aviv Stock Exchange Head of Clearing Orly Grinfeld adds:
“The Blockchain technology will present a new level of safety for securities lending and will support growth for transactions based on this new platform.”
It is also worth noting that this platform has been in private testing since March. So far, the collected feedback seems to be very positive. Putting this platform through its places in a real-world setting may yield very different results, however.