Facing the favorite Blockchain, crypto remains the unloved: they are yet sisters, we can hardly imagine one without the other. The Tel Aviv Stock Exchange has every intention of profiting from blockchain; the financial institutions which are the pillars of classical finance follow the same path. They opened the doors to blockchain, failing that – for the time being – roll out the red carpet for cryptocurrencies.
Tel Aviv gets into the blockchain era
In a press release dated July 28, 2020, the Tel Aviv Stock Exchange – The Tel Aviv Stock Exchange (TASE) – announced the development of a blockchain-based securities lending platform.
This platform developed in partnership with the Israeli company The Floor, and companies Accenture and Intel, will be the first of its kind in the country.
The platform will be built on theHyperledger Sawtooth who uses technology Intel Software Guard Extensions to encrypt transaction data. Accenture is responsible for the development of smart contracts on the platform.
The latter is designed as a one-stop shop for all securities lending transactions; the platform will provide access to larger volumes of securities, within shorter timeframes.
The use of blockchain will allow TASE to take advantage of the advantages of blockchain: the facilitation of Peer-to-Peer transactions, access to smart contracts and, strengthening of transaction security.
From blockchain banks today, to crypto banks tomorrow?
In April 2020, the Banco Bilbao Vizcaya Argentaria (BBVA) became the first international bank to issue a loan using blockchain.
The entire loan process, from negotiating terms to signing, was carried out using a distributed ledger; the bank said it had cut the negotiation time for the 75 million euro loan from days to hours.
In May 2020, the Russian business and investment bank, Sberbank CIB, completed the first blockchain-based commercial bond transaction, in Russia.
The bond issuance was carried out using smart contracts; the transaction was carried out on a blockchain platform based on theHyperledger Fabric 1.1.
The changing financial landscape has crossed borders that could previously be considered hermetic; the distinction between “classical finance” and modern “new finance” will soon be purely theoretical and historical, the new finance is transforming the “financial institutions of yesterday”. And to think that all these ideological wars and this transition phase will soon be a thing of the past.
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