The Tel Aviv Stock Exchange (TASE) is set to launch its distributed ledger technology (DLT) securities lending project, which aims to fill a gap in the Israeli securities market, where there is currently no central lending platform.
Once launched in November, the platform will create one central terminal that enables direct lending among all the major financial instruments, designed as a “one-stop-shop” for all operations with securities lending and provide access to larger securities volumes in shorter terms.
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The project, first announced in September 2016, has been deployed in a beta production environment over the last five months after a successful implementation of the initial proof of concept.
“The Blockchain technology will present a new level of safety for securities lending and will support growth for transactions based on this new platform. TASE is a global financial innovation leader, and strategically pursues the technological advancement of the capital market,” said Orly Grinfeld, EVP and Head of Clearing at TASE.
TASE puts the finishing touches with partners
Working with many partners, including Accenture, Intel, and local fintech center The Floor, the TASE intends to profit from its advantages such as direct peer-to-peer transactions, smart contracts, and enhanced security.
Blockchain Technology Partners (BTP) is helping the exchange operator through providing its flagship blockchain management platform, dubbed ‘Sextant,’ which handles the deployment and ongoing management of blockchain networks.
Since the platform was built on Hyperledger Sawtooth that utilizes crypto technology to encrypt transaction data, Sextant features a one-click deployment of relevant networks running on industry-standard Kubernetes clusters, which is one of its major business attributes.
Also featured is that BTP and TASE worked on acceptance testing over the past few months with their collaboration having led to changes to the contributed upstream.
For its part, Accenture worked on the development of smart contracts on the platform that uses a blockchain to track and categorize transactions, including holdings, receipts, and settlements.