The London Stock Exchange Group (LSEG.L) is investigating the use of blockchain to create what it called on Monday “an end-to-end digital market ecosystem to raise and transfer capital across asset classes”.
The Financial Times was first informed by Murray Roos, the head of capital markets at LSEG, that the London-based exchange had reached a “inflection point” in its consideration of the feasibility of a blockchain-powered trading venue.
Blockchain is a digital ledger that records and validates transactions. It is perhaps best recognised as the technology underlying cryptocurrencies like bitcoin and other crypto assets.
The decision by LSEG comes as a number of well-known financial organisations discuss how blockchain technology may be used to simplify the issuance and trading of financial assets.
“LSEG is exploring plans to build an end-to-end digital market ecosystem that will allow for the raising and transfer of capital in a more seamless, cost-efficient way across asset classes,” the business said in an email to Reuters.
Earlier, in an interview with the Financial Times, Roos stated that LSEG is not constructing anything around cryptoassets but rather is aiming to leverage the technology to boost the effectiveness of purchasing, selling, and keeping traditional assets.
“The idea is to use digital technology to make a process that is slicker, smoother, cheaper, and more transparent and to have it regulated,” he was cited in the newspaper as saying.
The FT reported that, subject to regulatory permissions, LSEG is thinking about creating a distinct legal organisation for its digital markets operations.
According to the article, the business has already begun discussions with authorities, a number of governments, the British government, and the Treasury.
