LSE Group Prepares Blockchain-Based Digital Asset Business

London Stock Exchange Group is studying the use of the block chain to establish what he described Monday as “an end-to-end digital marketplace ecosystem to raise and transfer capital across different asset classes”.

The company had been studying the potential of a blockchain-based intermediation center for about a year and has reached a “inflection point” in which he has decided to go ahead with his plans, he had said Murray Rooshead of capital markets for the group LSEin an interview with the FT.

He “blockchain” or block chains, known for being the technology on which cryptocurrencies such as bitcoin are based, is a digital accounting record where transactions are recorded and verified.

The news comes at a time when several financial institutions are talking about the potential of the blockchain to streamline the process of issuing and intermediation of financial assets.

“LSEG is exploring plans to build an end-to-end digital marketplace ecosystem that will enable more seamless and profitable raising and transfer of capital across all asset classesthe company told Reuters in an email.

LSE it is not building anything around crypto assets, but is trying to use the technology that underpins them to improve the efficiency of buying, selling and holding traditional assets, Roos had earlier told the FT.

“The idea is to use digital technology to make the process simpler, more fluid, cheap and transparent (…) and to be regulated”.

LSEG is considering the possibility of using a separate legal entity for the digital marketplaces business, according to the information on Monday, adding that it expected to have it up and running within the next year, subject to regulatory approvals.

The company is already in talks with regulators, in multiple jurisdictions, as well as with the UK government and Treasury, the article added.

Thomson Reuters, parent of Reuters News, has a minority stake in LSEGwhich pays Reuters for the news.

Source: Reuters