The Tel Aviv Stock Exchange (TASE) plans to launch a blockchain-based securities lending pool in November. 

According to TASE, the first-of-its-kind system will change the securities lending market by enabling direct borrowing among investors across a range of major financial instruments. By concentrating all lending activities under one roof, it will allow for larger-scale, shorter-term transactions. 

Discussing the news Senior VP President and Director of the Exchange’s Clearing Department, Orly Greenfled, said:

“The Tel Aviv Stock Exchange is proud to launch the first loan database system of its kind, as a secure, innovative and groundbreaking platform. Blockchain technology will enable securities lending trading while securing information and supporting the increase in the number of transactions. The TASE is a world leader in the field of financial technological innovation, and continues to work for the development of the capital market as part of its strategic plan.”

Development of the system was announced in May 2018, and has seen TASE partner with Accenture, Intel, and local Israeli fintech The Floor. The system is based on Hyperledger Sawtooth, and commenced initial testing in March 2020.  In addition to offering scaling and time improvements, the new smart contract-based system should also improve security and reduce costs. 

AYO.NEWS says:

With its complex nature and pressing need for speed and security, securities trading and lending is a prime use case for blockchain and DLT technology, where smart contracts can instantly transform the process from one dominated by arduous legacy mechanisms to an easy, fast, and completely transparent convenience. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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