“The idea is to use digital technology to make a process that is slicker, smoother, cheaper and more transparent,” LSE Group’s head of capital markets told the Financial Times.
The London Stock Exchange Group has drawn up plans for a new blockchain-based digital assets business, the Financial Times reported on September 4.
While the news sounds buzzy for crypto enthusiasts, the exchange isn’t planning on offering crypto: it plans on using blockchain tech to buy, sell and hold traditional assets.
“The idea is to use digital technology to make a process that is slicker, smoother, cheaper and more transparent . . . and to have it regulated,” Murray Roos, head of capital markets at the LSE Group, told FT in an interview.
The company has reportedly been looking into the potential of blockchain tech for a year, and it has now reached an “inflection point” whereby it’s ready to move ahead with its plans.
Blockchain technology has a plethora of benefits outside of cryptoassets. The first blockchain was created by Satoshi Nakamoto, the pseudonymous developer[s] behind Bitcoin, but the idea spans back to 1982 when Berkeley PhD candidate David Chaum wrote a thesis titled, “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups”.
Read more: Bitcoin Explained | A beginner’s guide
A blockchain is a decentralised public ledger, similar to a database, that is used to record transactions. Data recorded on a blockchain cannot be easily changed or erased, thanks to its cryptographic security, making it highly secure and immutable.
The Financial Times noted that the London Stock Exchange Group is considering using a separate legal entity for the digital markets business.
If the business obtains the necessary regulatory approvals, it could be up and running within the next year.
The news evokes a precipitous time for the institutional adoption of blockchain and Bitcoin – spearheaded by BlackRock’s spot Bitcoin ETF application.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
