The London Stock Exchange Group (LSEG) is set to launch a digital markets business utilising blockchain technology for traditional financial asset trading.
Julia Hoggett, head of the London Stock Exchange unit, will lead the endeavour.
The initiative isn’t centred on cryptocurrencies but aims to harness blockchain, the foundation of tokens such as bitcoin, to enhance traditional asset trading processes.
LSEG seeks a streamlined, transparent and regulated digital transaction platform.
This move aligns with broader financial sector discussions on blockchain’s potential to simplify asset issuance and trading, primarily through tokenisation, the digital conversion of assets.
Upon successful implementation, LSEG aims to offer a comprehensive blockchain-based trading ecosystem, complementing its existing services.
The project, still awaiting regulatory approval, anticipates launching the first market within the following year. Consultations are ongoing with global regulators and the UK government and Treasury.
Recent data indicates roughly $800 million of traditional assets have been tokenised to date.
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