Reports have surfaced online, that claim that the London Stock Exchange (LSE) is currently anticipating more ‘interesting’ use cases when it comes to experimenting with blockchain.
The LSE has apparently noticed that rival stock exchanges have floated and executed few “interesting” ideas, and currently LSE’s move is to to just wait and watch which one of these “gain market traction.” Only when they are satisfied with the information they have on how these ‘ideas’ are doing, will they make any move in the space themselves.
To cite some of the brilliant work being done by other exchanges- the Australian Securities Exchange (ASX) is rebuilding its ageing CHESS settlement system with help from distributed ledger startup Digital Asset, the SIX Swiss Exchange wishes to launch a blockchain platform to speed up trading later this year and notably the Gibraltar Stock Exchange (GSX) has also started allowing the listing of tokenized bonds, securities and funds.
Stock exchanges across the world are experimenting with this technology, while LSE decides to wait and bide its time. This could be a successful approach since they will have more insights on how the market is reacting to these new developments.
LSE CEO, Nikhil Rathi, told CNBC that they are definitely looking forward to using the technology:
“You can certainly see distributed ledger technology having an application in the issuance process. I can see that technology being used in settlement too.”
Their intentions here are solid, considering that earlier this year, LSE Group led a $20 million seed funding round for Nivaura, a capital markets blockchain startup. They also offered a test environment Group-operated platform to blockchain startup 20|30, which went on to raise £3 million ($3.93 million) in a sale of tokenized shares.
However, they are yet to make any direct application of this technology, in their own exchange.