LSEG links with IBM to build key blockchain solution for SME's
Borsa Italiana, part of London Stock Exchange Group, has teamed up with IBM to build a blockchain solution digitising the issuance of securities for small and medium enterprises (SMEs) in Europe. Designed to simplify the tracking and management of shareholding information, the new system is focused on creating a distributed shared registry containing a record of all shareholder transactions, helping to open up new opportunities for trading and investing.
Instead of having to deal with the paper trading certificates commonly issued to private companies today, unlisted European SMEs can look forward to enjoying a more digitised, streamlined and transparent process – giving issuers, regulators, investors and others increased insight into company information.
Plus, this blockchain solution is aimed at giving the SMEs better access to credit and linking them into a broader and more mature ecosystem, so that they can set up new trading networks and obtain funding by sharing financial data in a security-rich and transparent public arena.
Taking the lead
The system, built on the Hyperledger Fabric version 1.0 blockchain framework, is designed to help ensure that highly sensitive securities data can be shared amongst permitted network participants while remaining secure and gated. It was developed in collaboration with IBM and is now undergoing an initial test phase with a small group of partners and clients.
Commenting on the project, Raffaele Jerusalmi, CEO, Borsa Italiana, said:
"Through our work with IBM on this blockchain solution, Borsa Italiana is taking the lead in transforming the way European SMEs can manage their shareholder data and at the same time expand credit access – all on a trusted digital platform."
Chris Corrado, Group COO and CIO, LSEG, added:
"LSEG is testing the use of blockchain technology in a financial business network where data segregation and confidentiality is vital. By working with IBM, a pioneer in enterprise-class blockchain solutions, we are committed to building, testing, and scaling our capabilities in emerging technologies over time."
To find out more about this important development, please contact the team.