London Stock Exchange Uses Blockchain Technology For Asset Trading

London's stock exchange uses blockchain technology. (Photo; Doc. Ledger Insight)

JAKARTA - The London Stock Exchange Group (LSEG) is designing a big step by pioneering a new digital market that uses blockchain technology. This effort will make it the world's first major exchange to widely adopt blockchain in the trading of regular financial assets.

This plan has been fought for for about a year, and LSEG feels it's time to make it happen. Murray Roos, LSEG Capital Market Group Director, spoke to the Financial Times about this ambitious move. Julia Hoffgett, CEO of the London Stock Exchange, was tasked with leading the project.

LSEG is not a foreign name in the global stock exchange world. They are on par with other big players such as NYSE Euronext, Nasdaq, and CME Group. However, recently, LSEG has been looking at blockchain technology as a solution to increase speed, efficiency and security in financial transactions.

Despite using blockchain, Roos emphasized that LSEG does not plan to engage in crypto assets. They want to use blockchain technology that supports crypto to improve traditional asset transaction processes. The goal is to create more efficient, structured, and transparent processes.

They have spoken with regulators, including the UK government and the Treasury Department, to ensure that the project complies with applicable rules and regulations. LSEG is ambitious to create a global platform that allows cross-judicial participation, something that has never happened in the analogous world.

The example that Roos mentioned is that if a Swiss buyer wanted to buy Japanese assets from American sellers. In the conventional world, this could be complicated, but with the support of regulators and blockchain technology, the process would be much simpler.

Initially, this digital market might focus on trading private assets, where transactions often run slowly. However, if this model proves successful, they plan to expand its scope to other types of assets.