London Stock Exchange Is Ready to Use Blockchain Technology

The stock exchange over 300 years old in the British capital is one of the oldest stock exchanges in the world. In the digital age, the floor is thinking of deploying new technologies like blockchain.

According to CNBC, Nikhil Rathi, CEO of London Stock Exchange, suggested that the blockchain, which is the technology to record data on a distributed computer network instead of focusing, could have applications in the stock exchange in England.

You can certainly visualize distributed ledger technology with applications during the release process. I can imagine the technology used to settle. Rathi said the London boss said that he found many different types of interesting ideas from rival exchanges and would follow up on which ideas the market was most interested in.

For example, the Swiss SIX platform is seeking to launch a platform based on the blockchain to speed up the transaction process, while the Gibraltar Stock Exchange launches a digital version of many securities, such as corporate bonds.

The London Stock Exchange recently bought a minority stake in Nivaura, which announced that they issued the world’s first automated cryptocurrency listed bonds. The floor said they tested the issuance, receipt, and transaction of shares with Nivaura in the managed “sandbox”. However, they did not say whether testing would be implemented in a real environment.

Many financial firms say they see great benefits for the industry from blockchain technology but are separating themselves from pre-coding. The first blockchain was created to make the public ledger for bitcoin transactions. For example, JPMorgan said it would roll its own cryptocurrency into USD and set aside for large payments. JPMorgan CEO Jamie Dimon meanwhile is the critic of pre-coding, calling bitcoin a fraud.

Rathi said that despite his support for competition and innovation in the capital market, some extreme manifestations in pre-coding made him a bit cautious. Cryptocurrency prices plummeted after a dizzying price rise in late 2017, early 2018. Bitcoin once reached $ 20,000 in December 2017, currently priced at $ 5,300-5,400, according to Coinmarketcap.