The Tel-Aviv Stock Exchange (TASE) announced the launch of a Central Blockchain Securities Lending Platform in Israel.
The platform will transform the securities lending market in Israel by enabling direct lending among all the major financial instruments. It will function as a one-stop-shop for all securities lending activities, permitting access to larger securities volumes within shorter time frames, even operating in shorter-term positions.
In March 2020, TASE members were given access to an initial testing environment in order to test lending transactions in the new platform and adapt their systems in preparation for the production phase.
The use of Distributed Ledger Technology (DLT) as the basis of this new trading platform will harness some of the blockchain’s primary advantages and features, such as direct peer-to-peer transactions, smart contracts and enhanced security through immutability.
All of these are expected to benefit TASE, its custodians and their clients by reducing costs, increasing security and enabling the market to grow to its full potential.
Orly Grinfeld, EVP and Head of Clearing at TASE said,
“The Tel Aviv Stock Exchange is proud to present this first-of-a-kind lending pool, a safe, cutting-edge and state of the art platform. The blockchain technology will present a new level of safety for securities lending and will support growth for transactions based on this new platform. TASE is a global financial innovation leader, and strategically pursues the technological advancement of the capital market.”
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