London Stock Exchange Group Plans Blockchain-Powered Digital Markets Business

September 6, 2023

By Sharan Kaur Phillora

The London Stock Exchange Group (LSEG) has announced its intention to launch a groundbreaking blockchain-powered digital markets business, signaling a significant step toward leveraging cryptocurrency technology for enhancing the trading of conventional financial assets.

Here’s what we know:

According to an LSEG spokesperson, the company aims to construct a comprehensive digital market ecosystem that streamlines the capital raising and asset transfer processes across diverse classes more effectively and affordably. After a year of meticulous evaluation, Murray Roos, the Head of Capital Markets at LSE Group, stated that the company is at an “inflection point” and poised to advance its blockchain-driven trading initiative.

The group is presently contemplating the establishment of a distinct legal entity dedicated to its digital markets enterprise, with aspirations of realizing this venture within the upcoming year, contingent upon regulatory approvals.

LSEG is presently engaged in discussions with regulatory authorities across various jurisdictions, including consultations with the UK government and Treasury.

Roos underlined that LSEG’s efforts are explicitly not centered around cryptocurrency assets, clarifying that the emphasis lies in harnessing blockchain’s potential to fortify the security and accessibility of asset trading. The primary objective is to employ digital technology to optimize processes by making them more streamlined, cost-efficient, transparent, and compliant with rigorous regulatory standards, as stated by the Financial Times.

The backdrop against which LSEG’s initiative unfolds involves a burgeoning interest in real-world asset tokenization within the financial realm. Asset tokenization, by enabling fractional ownership, not only augments liquidity but also opens up avenues to assets that were once deemed illiquid.

With the London Stock Exchange Group’s ambitious blockchain-driven digital markets project, the financial industry takes a bold step toward harnessing the power of technology for reshaping traditional asset trading paradigms.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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