The London Stock Exchange Group has moved a step further in adopting blockchain technology. The group has joined forces with the tech giant, IBM to build the new platform.
According to , the new platform will be used to digitally issue private shares in small and medium enterprises in Italy. The blockchain solution will be implemented by London Stock Exchange’s Italian operations — Borsa Italiana.
Blockchain technology is being experimented by stock exchanges and companies in all capacities. The immutable and transparent nature of blockchain, combined with fast transaction capability of cryptocurrencies makes distributed ledger technology an ideal fit in the industry segment.
Once implemented, the blockchain solution created by Borsa Italiana will make it easier to record and keep track of the shareholding patterns in unlisted companies. The solution will be built using Hyperledger’s Fabric distributed ledger technology.
The implementation of blockchain solution will mark a deviation from the age-old process of keeping records on paper. With all stakeholder records on the blockchain, it will be easy to access the information from anywhere in a transparent fashion. Also, the records can be updated whenever required once the participants agree to the changes.
The head of emerging technology at London Stock Exchange Group, David Harris said,
“As these companies grow they will be better at interacting with their shareholders.”
The implementation of blockchain solution by Borsa Italiana will initially be limited to trials, in which a small group of clients and partners of London Stock Exchange will take part. It might soon see wide spread adoption based on the results.
Being one of the participating companies in Linux Foundation’s Hyperledger project, IBM is involved in multiple projects involving Hyperledger’s Fabric blockchain. The company is working in collaboration with businesses, both big and small across various domains including fintech, supply chain, logistics and more.
Ref: | Image: NewsBTC
