The Tel Aviv Stock Exchange has announced a blockchain platform for securities lending in a unique venture for the country.
In partnership with the city’s fintech hub - The Floor, management consultants Accenture and Intel, the exchange will be launching a platform called “Blockchain Securities Lending” (BSL) which will harness blockchain technology for securities lending.
The official press release explains that the BSL 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."
Blockchain technology is seen in this new venture as a benefit for securities lending due to its peer-to-peer structure, the immutability of the ledger and the possibility of smart contracts. The firms involved also tout the increased privacy that will come along with blockchain transactions - as well as the reduced costs.
Originating during a hackathon in 2017, the platform was built using Hyperledger’s Sawtooth infrastructure and utilises Intel’s Software Guard Extensions (Intel® SGX) technology to encrypt transaction data. Management consultancy firm Accenture is working on the development of smart contracts and security among other features.
Rick Echevarria, Vice President of Software and Services Group at Intel explained the significance of blockchain for the financial services market:
“Intel believes blockchain can transform business processes, and Intel SGX technology is an important enabling technology for blockhain solutions. Today’s announcement is exciting as it demonstrates the progress made by TASE, The Floor, and Accenture in developing a solution that accelerates blockchain adoption and, more importantly, brings value to the financial services market in Israel.”
Feature Image Credit: "Tel Aviv Stock Exchange - New Building Lobby 1" by "Yaniv Morozovsky" via Wikimedia Commons; licensed under "CC BY-SA 4.0"