The partnership will give small private European companies the opportunity to interact with shareholders and vice versa, and assists the tracking and management of information by recording all shareholder transactions.
The technology is built on Hyperledger Fabric version 1.0, a blockchain framework. The Linux Foundation hosts the projects, and the system will allow sensitive securities data to be shared with permissioned network participants while remaining secure and gated. The solution is undergoing an initial test phase with a small group of LSE partners and clients. So far, the move is being met with approval by blockchain and exchange specialists.
The LSE is not the first European exchange to announce the use of blockchain technology. There have been a number of European banks that have said they are using blockchain-based trade finance for SMEs, in 2017, according to Bitcoin Magazine. This includes the American International Group and Standard Chartered Bank.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now