Key Takeaways
- TASE is looking to “promote the implementation of innovative technologies” and will explore the use of distributed ledgers
- The integration of blockchain tech is part of the stock exchange’s 5-year strategic plan to revolutionize capital markets.
Israel’s only debt/equity marketplace, The Tel Aviv Stock Exchange (TASE), plans to establish a blockchain and digital asset-based trading platform.
According to the strategy document, TASE is looking to “promote the implementation of innovative technologies” and will explore the use of distributed ledgers for immutable record-keeping, tokenization, and smart contracts to improve existing markets infrastructure and offer digital asset “services and products.”
Elaborating on the plan, TASE states it will examine multiple potential action plans, including converting existing infrastructure to innovative technologies, deploying innovative technologies into specialized platforms, and offering several services and products for digital assets.
The integration of blockchain tech is part of the stock exchange’s 5-year strategic plan to revolutionize capital markets. The plan was approved by the stock exchange’s board of directors.
Ittai Ben Zeev, the CEO of TASE, commented that the initiative is designed to put TASE in a preferential position to benefit from the ongoing technological transformation of the global financial markets.
“We see in the next five years a critical window of opportunity for the integration of the Israeli Stock Exchange in the technological revolution that the world’s capital markets are going through,” said CEO Itai Ben-Zeev in the document.
The latest development comes amid TASE recently announcing that it’s working with the Israel Ministry of Finance to issue a blockchain base digital state bond.TASE and the Government aim to streamline processes, reduce costs and also shorten the duration of issuance, and clear state bonds through this move.
More countries worldwide are looking to leverage blockchain technology to improve financial market infrastructure. Earlier this year, the European Union approved a five-year pilot program for Stock and bond issuance, trading, and settlement via blockchain technology.
Currently, the Israel Government is creating more steps to create a crypto-friendly regulator environment in the country. Earlier this year, the country’s capital markets regulator handed out its first licenses for crypto service providers, including to a local cryptocurrency exchange Bits of Gold. Last March, Israel’s Bank Leumi further announced it became the country’s first financial institution to enable clients to trade cryptocurrencies.
