London Stock Exchange Group Plans to Utilize Blockchain for New Digital Markets Business
The London Stock Exchange Group (LSEG) has announced its plans to harness the power of blockchain technology for a new digital markets business. This move will make LSEG the first major exchange to incorporate blockchain into traditional trading, which has typically been associated with cryptocurrencies.
Murray Roos, the Head of Capital Markets at LSEG, revealed that the exchange has been exploring the possibility of a blockchain-powered trading venue for about a year. After reaching an inflection point, LSEG has decided to move forward with the implementation of these plans. Julia Hoggett, Head of the London Stock Exchange, has been appointed to lead the project.
Contrary to popular belief, LSEG is not planning to build anything related to crypto assets. Instead, the focus is on leveraging blockchain technology to enhance the buying, selling, and holding of traditional assets. By utilizing digital technology, LSEG aims to streamline processes, reduce costs, increase transparency, and ensure regulatory compliance.
Murray Roos emphasized that LSEG aims to offer an ‘end to end’ ecosystem powered by blockchain, making it the first large global stock exchange to do so. The exchange is even considering establishing a separate legal entity for this new digital markets business. LSEG hopes to launch the first market within the next year, pending regulatory approvals.