Tel Aviv’s Stock Exchange will be launching Israel’s first central securities lending platform this coming November of 2020. The platform was built on blockchain technology.
On July 28, the Tel Aviv Stock Exchange (TASE) announce that the platform will provide an essential function in the capital market of the country. As the country that lacks a central system for securities lending, this platform will be a great help. The new platform will blockchain-based, focusing on securities lending activities and enabling direct borrowing among different investors in the range of primary financial instruments.
Back in March, TASE launched a testing environment dedicated to the platform that will allow members to make loan transactions. After the testing results, the systems’ adjustment has been made and will be officially launched in November. The platform highlighted the value that has been offered by blockchain technologies; this will focus on the peer-to-peer transaction support, smart contract functionality, and transaction security.
TASE made a statement that the costs of operations between exchange custodians and clients will be cheaper with a higher security level.
Senior Vice President and Director of TASE’s clearing department, Orly Greenfield said: “Blockchain technology will enable securities lending trading while securing information and supporting the increase in the number of transactions.”
In May 2018, TASE announced the development of a new platform using Hyperledger Sawtooth. The project has collaborated with their partners; Accenture, Intel, and The Floor, an Israeli fintech.