The prestigious London Stock Exchange Group, boasting a rich history of traditional finance, is clearing the runway for the integration of the innovative blockchain technology into its trading procedure for standard fiscal assets, asserts a recent Financial Times disclosure.
This decision results from nearly a year of research and deliberation, exploring the feasibility of fusing these conventional markets with the concise, transparent infrastructure blockchain provides. Murray Ross, the company’s Head of Capital Markets expressed that this transition has now reached a “point-of-no-turn.” An interesting side note, however, is the explicit mention of Mr. Ross’ assertion that the proposed system would exclude all forms of cryptocurrencies, strictly limiting its utilization of the blockchain technology only to amplify the efficiency of the old-fashioned asset buying, selling, and holding.
A focus on adaptability and evolution seems to be the primary motive behind this move, as Ross spoke about harnessing digital technology to streamline processes, infusing them with an economical, transparent, and regulated approach. In essence, the objective is to utilize blockchain – an immutable, distributed ledger that efficiently tracks assets and records transactions across a business network- as a tool for change and progression.
The LSE Group’s strategy also contains a consideration of setting up a standalone branch exclusively for handling the blockchain-centered market functions. This comes with a necessary dialogue with regulators, interaction with the U.K. Government and Treasury along with jurisdictions over multiple regions to ensure the smooth operability of such a system.
This step by the seasoned finance institution towards the world of digital technology does spark a question about the conservative tradition resistive traditional asset holders who still view the digital advancements with a skeptical eye. Especially when the entire blockchain infrastructure is frequently associated with the turbulent realm of cryptocurrencies.
All in all, these developments carry the spotlight onto other major financial firms around the globe, who might soon follow suit and join the chain to furnish tokenised versions of conventional assets like gold and U.S. Treasury notes. We are looking at a future where the long-established financial markets thread the realms of blockchain technology, pushing the boundaries of what is traditional and what is innovative. The blockchain chapter of the financial world seems to be just beginning.
Source: Coindesk
