DailyCoin
DailyCoin

Bitcoin Price, Digital Currencies News, Blockchain News, Charts and Information

Post Login
  • Home
  • Price & Data
    • Bitcoin Price Index
    • Bitcoin Cash (BCH) Price
    • Ethereum Classic (ETC) Price
    • Ethereum Price
    • Litecoin (LTC) Price
    • Ripple (XRP) Price
    • EOS (EOS) Price
    • Dash (DASH) Price
    • Zcash (ZEC) Price
    • Market Center
    • Monero (XMR) Price
    • Bitcoin Price Ticker Widget
  • News
    • Business News
    • Markets News
    • Technology News
    • Features
    • Legal
    • Bitcoin Market
    • Mining
    • Companies
    • Crime
    • Ethereum Market
    • Bitcoin
    • Exchanges
    • Regulation
    • Litecoin Market
    • Security
    • Startups
    • Banking
    • Prices News
    • Ethereum
    • Bitcoin ATMs
    • Bitcoin News
    • Ripple Market
    • Energy
    • Press Releases
  • Guides
    • What is Bitcoin?
    • Why Use Bitcoin?
    • How Can I Buy Bitcoins?
    • How do Bitcoin Transactions Work?
    • How Bitcoin Mining Works
    • How to Store Your Bitcoins
    • What Can You Buy with Bitcoin?
    • Who is Satoshi Nakamoto?
  • Wallet
X

London Stock Exchange Group is Using Blockchain to Record Unlisted Securities

London Stock Exchange Group

London Stock Exchange Group is Using Blockchain to Record Unlisted Securities

July 19, 2017 9:00 AM | By Jit Sutradhar Business News Capital Markets News Startups Use Cases & Verticals

  • Google
  • Facebook
  • Twitter
  • More
    • Pinterest
    • Reddit
    • Digg
    • Linkedin
    • Delicious
    • Tumblr
    • BufferApp
    • Pocket
    • Evernote

London Stock Exchange Group

A subsidiary of the London Stock Exchange Group is using blockchain to help unlisted small businesses tap resources previously only available to larger, public companies.

Developed by London Stock Exchange subsidiary Borsa Italiana, the blockchain platform, built with IBM Blockchain, is being designed to digitize both securities ownership and the capital structure of small- to medium-sized businesses (SMEs).

Currently undergoing an initial test phase with a small group of Borsa Italiana clients, the platform, powered by Hyperledger Fabric 1.0, is expected to eventually simplify the issuance of shares, streamlining SME access to capital.

London Stock Exchange Group’s head of commercial technology innovation, David Harris, explained how moving the entire record of a small business’s capital structure to a blockchain could make it easier for corporate owners to gain the trust of future investors.

Harris told CoinDesk:

“Once you offer this structure to allow the ownership to be registered on a blockchain, you’re then opening up greater certainty as to the ownership structure, which adds to the transparency and certainty of what future investors in the company will be walking into.”

Currently limited to SMEs in Europe, the blockchain solution is designed to replace the paper trading certificates still in use by many private companies with smaller budgets.

At this initial phase, only the records themselves are being moved to a blockchain, meaning Harris doesn’t expect the increased efficiency will result in more frequent trades and higher liquidity.

However, Harris said the current tests are just the first of what he imagines could lead to the simplification of the fundraising process itself.

“As you build out this ecosystem, it does not take a giant leap to where future shareholders, future capital, future debt can be raised,” said Harris.

Blockchain maturity

Still, today’s news also marks the first major public blockchain development for the London Stock Exchange Groups since it became a founding member of the then-unnamed Hyperledger project in late 2015.

After making early contributions to the code that eventually became known as Hyperledger Fabric, the London Stock Exchange Group has been relatively quiet.

According to Harris, the group, which also includes the Turquoise stock exchange and the FTSE AIM Italia SME index, remained skeptical that blockchain was mature enough to meet the company’s regulatory demands and transaction requirements.

In addition, Harris said there is also the difficulty of converting traditional assets and workflows into blockchain assets and smart contracts.

Then, with the release of Hyperledger Fabric 0.6 earlier this year, LSEG set up an internal working group that united its business, regulatory and legal teams as part of an effort “to figure out the right places” to apply the technology.

The final decision to focus on private small business shares puts the group in a similar category to Nasdaq, which unveiled its own private securities platform using Chain earlier this year.

“With new companies, small- and medium-sized enterprises, who are not part yet of the public issuance process, they are a good starting point to introduce new types of models,” said Harris.

Data weave

While the project began with Fabric 0.6, the version currently being tested was recently upgraded to the newly released production-ready Fabric 1.0, according to IBM’s vice president of blockchain solutions and research, Ramesh Gopinath.

Gopinath reported that even after the upgrade, what remained to be satisfied from a regulatory perspective was the security of the data being supplied throughout the “lifecycle.” This included all the events a small company undergoes, from its entrance to the blockchain ecosystem, through to its possible exit as a publicly traded company.

By “weaving” data provided by the still-unnamed test firms together with corporate actions programmed into smart contracts, “the right levels of trust in the data and the workflow itself” can potentially be achieved, he said.

A time frame for when the results of the tests will be published was not revealed.

Harris concluded:

“It’s a technology that once it’s widely adopted – and it has a long way to go – it is a disruptive innovation to its core, which is very exciting.”

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Chain.

London Stock Exchange image via Shutterstock

READ MORE

 

Article Source: http://www.coindesk.com

Borsa ItalianaIBMLondon Stock Exchange
  • Google
  • Facebook
  • Twitter
  • More
    • Pinterest
    • Reddit
    • Digg
    • Linkedin
    • Delicious
    • Tumblr
    • BufferApp
    • Pocket
    • Evernote
border-fence

Previous :


Exchange Trade Group: Jurisdiction is Challenging DLT Adoption
start, race, flag

Next :


Will Miners Signal? Bitcoin’s Next Segwit2x Lock-in Period Starts Today

Related Posts

News

R3 Banks Trial Blockchain Identity Registry

Ten global banks have tested a distributed ledger-based know-your-customer registry through the R3 blockchain consortium. BBVA, CIBC, ING, Intesa Sanpaolo, …

November 12, 2016 5:06 am | Jit Sutradhar

light, bulb
Initial Coin Offerings

Bitcoin Hedge Fund Director: ICOs Are Having a ‘Eureka’ Moment

The director of one of the first bitcoin hedge funds offered praise for initial coin offerings (ICOs) today, arguing in …

July 11, 2017 2:00 pm | Jit Sutradhar

kakao
News

Messaging Giant Kakao Launches Its Own Blockchain for Testing

Ground X, the blockchain development arm of the South Korean messaging giant Kakao, has launched a test network (testnet) of …

October 8, 2018 7:37 pm | Jit Sutradhar

Western Union
News

Western Union Seeks Patent for Digital Currency Analysis

Money transfer giant Western Union is seeking a patent for a transaction analysis system that could be applied to digital …

March 22, 2017 5:01 pm | Jit Sutradhar

Comments (0)

    Write a Reply or Comment Cancel reply

    You must be logged in to post a comment.

    You must be Logged In or Sign Up to post a comment.

    Recent Releases

    • Maker’s MKR Crypto Outperforms in February with 37% Gains

      February 16, 2019 4:11 PM | By Jit Sutradhar

    • Metrics May Point to Ether Being Undervalued

      February 16, 2019 10:00 AM | By Jit Sutradhar

    • tZERO Is Live, But Volume Is Light and Its Token’s Price Is Down Sharply

      February 15, 2019 7:27 PM | By Jit Sutradhar

    • NYSE Arca Filing Kicks Off Countdown for New Bitcoin ETF

      February 15, 2019 3:26 PM | By Jit Sutradhar

    Features

    • Maker’s MKR Crypto Outperforms in February with 37% Gains

    • ether-ethereum

      Metrics May Point to Ether Being Undervalued

    • tZERO

      tZERO Is Live, But Volume Is Light and Its Token’s Price Is Down Sharply

    • SEC

      NYSE Arca Filing Kicks Off Countdown for New Bitcoin ETF

    • dominos-pizza

      ‘Make Bitcoin Fun Again’: New Lightning App Lets You Buy Pizza With BTC

    • Home
    • Guides
    • About
    • Contact
    © 2019 DailyCoin . All Rights Reserved.

    Join to DailyCoin


    SignUp with Facebook
    SignUp with Twitter
    SignUp with Google
    or with email
    Username
    Email
    Password (at least 6 characters)
    Confirm Password

    Login to DailyCoin


    Login with Facebook
    Login with Twitter
    Login with Google
    or with email
    Username or e-mail
    Password
    Remember Me
    Lost Password?

    Reset Password

    Enter the username or e-mail you used in your profile. A password reset link will be sent to you by email.


    Username or E-mail


    Loading...

    Don't have an account? Sign Up Already have an account? Login