London Stock Exchange Group (LSEG) has announced its plans to launch a blockchain-enabled trading platform. This move comes as LSEG has been evaluating the potential of blockchain technology in trading financial assets for about a year. The company expects to officially introduce the platform next year, pending the necessary regulatory approvals.
The goal of the platform is to make trading processes smoother, cheaper, and more transparent while ensuring regulatory compliance. LSEG is in discussions with regulators and the government of the United Kingdom to create a global platform that allows participants from multiple jurisdictions to interact with each other while abiding by regulations.
Julia Hogget, the Chief Executive of the London Stock Exchange, will lead the project. LSEG aims to enhance the efficiency of trading financial assets by using blockchain technology. It is notable that LSEG is not interested in building cryptoassets; their focus is solely on utilizing blockchain technology to improve trading processes.
Shares of LSEG ended marginally down on the day of this announcement. However, the company’s financial results for the first six months of this year reported an 11.8% increase in income.
Overall, LSEG’s decision to launch a blockchain-enabled trading platform showcases its commitment to embracing emerging technologies and improving the efficiency of financial markets. By leveraging the benefits of blockchain technology, LSEG aims to create a more seamless and transparent trading experience for its participants while ensuring regulatory compliance.