The London Stock Exchange (LSE) Group is reportedly planning on creating a blockchain-based platform that will be offering traditional financial assets.
According to a report by mainstream media outlet Financial Times, the company has been looking into the potential of a blockchain-based trading venue for a year. LSE Group’s head of capital markets Murray Roos said that the company’s efforts in looking into the blockchain had reached a point where they decided to move their plans forward.
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Roos also clarified that they will not be building anything around cryptocurrencies. However, they will be using blockchain technology to enhance the efficiency of holding, buying and selling traditional assets.
According to Roos, their idea is to use digital technology to create a process that is “slicker, smoother, cheaper and more transparent” for traditional assets. The LSE Group executive also added that they will have it regulated.
Roos also mentioned that the LSE Group waited until investors were ready and the public blockchain technology was good enough before proceeding with the project. If the plan comes into fruition, Roos claimed that the LSE Group would be the first major global stock exchange that will be offering an end-to-end blockchain-powered ecosystem to investors.
Meanwhile, other traditional financial infrastructures have started to warm up to the idea of integrating blockchain technology into their business. On Aug. 31, the bank messaging network SWIFT shared a report on how it can connect with blockchains to solve the problem of interoperability between various blockchain networks.
Apart from financial infrastructures, an airline carrier has also started to integrate blockchain-based technologies. On Aug. 31, Lufthansa Airlines launched a nonfungible token (NFT) loyalty program on the Polygon network. NFT holders will have the chance to gain rewards such as lounge access and flight upgrades.