According to recent statements by the Tel Aviv Stock Exchange (TASE), located in Israel, from November will have its first central blockchain-based securities lending platform. Mainly, it hopes to offer a wide range of new and innovative financial products to its investors.
Additionally, in a July 28 announcement, it was indicated that the platform will play an essential role in the country’s capital markets. Importantly, they currently lack a central securities lending system.
“Starting on November 2, 2020 and for the first time, the Tel Aviv Stock Exchange will launch a central system for the loan of securities based on Blockchain technology” You can read the statement.
About, Orly Greenfeld, Executive Vice President and Director of the Exchange Compensation Department, said. “The Tel Aviv Stock Exchange (TASE) is proud to launch the first such loan database system. As a secure and innovative platform”
In addition, he added the following:
“Blockchain technology will allow the trading of securities loans … While securing information and supporting the increase in the number of transactions”
Basically, the Israel Stock Exchange seeks to be the world leader in the field of financial technology innovation. As it is known, the institution continues working for the development of the capital market.
The new Tel Aviv platform (TASE)
It should be quite clear that it will act as an innovative system that will allow users to operate with direct loans in the capital markets. Using a wide variety of high quality financial instruments and products.
The new platform will allow TASE to adequately provide direct loan services to interested users and investors. At the same time, it provides innovative financial solutions in today’s markets.
Thus, through a new platform, TASE seeks to change the current loan system for a sophisticated and efficient one. Above all, that it meets the growing needs of investors, when conducting its operations.
A Blockchain-based platform
It should be noted that Israel does not have a loan platform to provide services to users. Currently, they use alternatives as interbank solutions.
Therefore, a central Blockchain securities lending platform in Israel will help investors to lend their securities directly.
In this way, Israel decided to go for Distributed Accounting Technology (DLT), using it as a fundamental component in TASE’s next securities lending platform. First of all, it will use the basic characteristics of Blockchain technology, such as p2p transactions and smart contracts. Allowing to enter into agreements and transactions between various parties involved.
Therefore, the TASE platform will work with the technology of Hyperledger Sawtooth. This is an enterprise Blockchain platform designed by the Linux Foundation.
With the new platform, investors are expected to take full advantage of the benefits of the technology. Essentially, by being able to carry out transactions between them directly.
TASE states that the new system will increase the security of your transactions. Thus, like holding operations at much lower costs than usual. Exploiting the full potential of capital markets.
About the Tel Aviv Stock Exchange (TASE)
The Tel Aviv Stock Exchange (TASE), was founded in 1953. It is a public market for trading securities in Israel and it plays an important role within the nation.
In closing, all of this is expected to benefit TASE, its custodians, and its customers. In order to reduce costs, increase security and allow the market to exploit its full potential.
I say goodbye, but not before leaving you this phrase by Jerry Smith: “Security is not expensive, it is invaluable“