LSEG to Launch Blockchain Powered Digital Marketplace

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  • The London Stock Exchange Group (LSEG) is exploring the use of blockchain technology to create a digital marketplace for raising and transferring capital across various asset classes.
  • The exchange has been studying blockchain-driven trading platforms for a year, aligning with a trend among mainstream financial institutions.
  • LSEG aims to enhance efficiency and reduce costs associated with buying, selling, and holding traditional assets, while ensuring compliance with regulations.

The London Stock Exchange Group (LSEG) is embarking on an exciting journey to harness the power of blockchain technology in order to create a comprehensive digital marketplace. This marketplace is envisioned to simplify the process of raising and transferring capital across a wide range of asset classes.

Murray Roos, the head of capital markets at LSEG, has revealed that the exchange has been deeply engrossed in studying the potential of a blockchain-driven trading platform for approximately a year. Now, they’ve reached a pivotal juncture in their exploration.

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This endeavor by LSEG falls in line with a broader trend observed among mainstream financial institutions. Many of them are increasingly recognizing the potential of blockchain technology to streamline the issuance and trading of financial assets.

It’s important to clarify that LSEG’s primary focus is on enhancing the efficiency and reducing the costs associated with buying, selling, and holding traditional assets. Their intention is not centered around cryptocurrency assets but rather leveraging digital technology to elevate the overall efficiency and transparency of traditional financial processes. Importantly, they are committed to ensuring that these processes remain fully compliant with regulations.

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To turn this vision into reality, LSEG is contemplating the establishment of a separate legal entity solely dedicated to the digital markets business. Their goal is to have this entity up and running within a year, pending regulatory approvals.

LSEG has already initiated discussions with various regulators, different jurisdictions, the British government, and the Treasury to pave the way for this ambitious project.

Thomson Reuters, the company that owns Reuters News, has a small ownership share in LSEG.