Tech
LSEG plans blockchain-based trading, but avoids cryptocurrencies
The London Stock Exchange Group is in talks to launch blockchain-based financial asset trading through a separate entity next year.
The company behind the London Stock Exchange has been exploring the potential of a blockchain-based trading venue for about a year, the Financial Times reported.
Murray Roos, LSE Group Head of Capital Markets, he told the FT that the venture would not involve cryptocurrencies.
Instead, it would only use blockchain technology, with the aim of improving the efficiency of trading traditional assets.
“The idea is to use digital technology to make the process smoother, smoother, cheaper and more transparent… and to make it regulated,” Roos said.
Julia Hoggett, head of the London Stock Exchange, has been tasked with leading the project, the report adds.
The company is currently in discussions with regulators in several jurisdictions and the UK Treasury over its blockchain market plans.
The London Stock Exchange Group did not immediately respond to a UKTN request for comment.
If the launch goes ahead, it would be the first major global exchange to offer blockchain-based “end to end” trading to investors, Roos said.
This comes as the London Stock Exchange seeks to stimulate activity in the UK’s public markets. Activity has been slow for the LSE and AIM markets this year compared to the boom in 2021. According to EY data, there have only been 18 issuers in the first half of 2023 – down 31% year-on-year.
In May, the London Stock Exchange said it was drawing up plans to launch a new one stock market for private companies next year.