Tel Aviv Stock Exchange Develops ‘First Of A Kind’ Blockchain Lending Platform

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The Tel Aviv Stock Exchange (TASE) has developed a “first of a kind” blockchain-based securities lending platform, according to a press release May 16. Sberbank CIB organized the issue corporate bonds using smart contracts, while the transaction was carried out on the Hyperledger Fabric 1.1-based blockchain platform. Last month, Banco Bilbao Vizcaya Argentaria (BBVA) became the first global bank to issue a loan using blockchain technology. The exchange has a market capitalization of $212 bln.Traditional financial institutions have begun to see the advantages blockchain can add to their business processes. The bank conducted the entire loan process, from the negotiation of terms to the signing, on a mutually distributed ledger, claiming that it cut the negotiation time for the €75 mln loan from “days to hours”.Recently, Sberbank CIB, the corporate and investment banking business of Russia’s largest bank Sberbank, conducted the first blockchain-based commercial bond transaction in Russia.

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The Tel Aviv Stock Exchange (TASE) has developed a “first of a kind” blockchain-based securities lending platform, according to a press release May 16. The new platform was completed in partnership with Israeli fintech firm The Floor, global professional services company Accenture, and Intel.

The exchange will reportedly create one central platform called Blockchain Securities Lending (BSL), which aims to revolutionize the securities lending market in Israel “by enabling direct lending among all the major financial instruments.” The platform will be designed as a “one-stop-shop” for all operations with securities lending and provide access to larger securities volumes in shorter terms.

By employing blockchain, the...

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