Tel Aviv Stock Exchange (TASE) plans to launch a security lending service based on blockchain technology in November.
On July 28, the company TASE announced that the platform will play an important role among the country’s capital markets, which currently do not have a central securities lending system.
This is an innovative platform that will be officially launched on November 2, 2020. It aims to transform the securities lending market in Israel by allowing direct lending to all major financial instruments. The platform will function as a one-stop shop for all lending activities. This will enable access to more securities in shorter terms.
TASE believes that their innovative structure is the opposite of the current one, which does not meet the needs of investors. The new blockchain-based system will concentrate all securities lending business and allow investors to borrow using a variety of major financial instruments.
In March this year TASE launched a dedicated test environment for the platform, allowing members to execute credit transactions. Based on these results, the exchange will adapt all its systems by November.
The company emphasized the great value of blockchcain technology for it. This is, in particular, support for peer-to-peer transactions, greater functionality of smart contracts and a significant increase in transaction security due to the invariability of the data contained in the chain. TASE it also states that the changes made will allow the trustees and clients of the exchange to operate at lower costs with a higher level of security.
“The Tel Aviv Stock Exchange proudly presents this first-of-its-kind lending platform, safe and modern. Technology Blockchain it will introduce a new level of security for securities lending and will support the development of transactions based on this platform ”.
Orly said Greenfield, senior vice president and director of the billing department of TASE.
To partners TASE include Accenture and Intel
TASE for the first time announced the development of its new platform, which is built on the basis of Hiperledger Sawtooth, in May 2018. The stock exchange collaborated on this project with partners such as Accenture, Intel and Israeli FINTECH The Floor.