The London Stock Exchange (LSE) is heavily engaging in the technological revolution. According to reports, the group plans to create a platform based on blockchain technology dedicated to traditional financial assets. What’s behind this ambitious initiative?
Nowadays, when blockchain technology is no longer associated only with cryptocurrencies, more and more sectors see its potential. One such sector is the world of traditional asset trading.
The LSE Group, having analyzed the possibilities offered by blockchain for over a year, decided to implement this technology in traditional asset trading. As Murray Roos, director of capital markets at the LSE Group emphasized, the company has no intention of creating anything around cryptocurrencies. Its goal is to use blockchain technology to enhance the efficiency of purchasing, selling, and storing traditional assets.
Roos emphasized that LSE’s ambition is to create a process that, thanks to digital technology, will be smoother, more transparent, cheaper, and more effective. Moreover, all activities within this platform will be subject to regulations.
However, this was not a spontaneous decision. LSE waited for blockchain technology to be advanced enough and investors ready for its implementation. If everything goes according to plan, LSE will become the first major global exchange offering completely blockchain-based ecosystems for investors.
But LSE is not the only traditional financial entity opening up to blockchain technology. SWIFT, the global bank messaging network, recently shared a report on the possibilities of connecting with blockchains to address the interoperability issue between different blockchain networks.
It’s also worth noting that it’s not only financiers who see the potential of blockchain. German airline Lufthansa has launched a loyalty program based on NFT (nonfungible tokens) on the Polygon network. Participants in the program will have a chance to win rewards such as lounge access or flight upgrades.
Blockchain technology is entering more and more areas of our lives, demonstrating its versatility. Over time, more industries will likely see its potential and apply it in their operations.