Apr 16, 2019 08:00 UTC
Apr 16, 2019 at 08:00 UTC
In a First, London Stock Exchange Issues Shares Through Blockchain Tokens
The London Stock Exchange becomes the first exchange of its kind to issue shares in blockchain based tokens. The move is being termed as the beginning of a new era where traditional exchanges are being seen as bringing cryptocurrency as a proxy into the regulated traditional markets.
The company behind issuing shares through tokens is fintech 2030 and it has sold $3.9 million worth of tokenized shares till now. London Stock Exchange has shown its interest in the Blockchain technology for quite some time now. Early this year, the exchange entered into a partnership with Hong Kong-based global fintech company, ATOM Group (ATOM) in order to enable its AXX Digital asset exchange to be able to use LSE tech.
The head of marketing at LSE tech believes that traditional tech enterprises are one of the most sought after in the crypto space and LSE tech is well placed in the market to avail those services.
London Stock Exchange has listed the Invesco Elwood Global Blockchain ETF and also invested in a cryptocurrency startup Nivaura leading a funding round of $20 million.
London Stock Exchange’s Move Towards Blockchain and Crypto shows the growing interest of traditional players towards the decentralized space. Mind you LSE is one of the oldest stock exchanges established back in 1571 and have a market capitalization of $4.59 trillion.
The Narrowing Gap Between Traditional and Crypto Space
While crypto regulations and its use as a daily driver is still under the loom, the trade markets have realized that the future lies in digitization. The funny thing is, while crypto was created to work against centralized establishments like banks and financial institutions, they have come around to incorporate crypto and blockchain in their consensus.
Banks and financial institutions have already started to avail either crypto services in the form of crypto trading and crypto staking or create their own stable coins.
Now the decision of the London Stock Exchange to list shares in a tokenized form suggest the change of sentiments in the traditional markets towards the decentralized space. There is no denying of the fact that the future will be digitized, and earlier you understand it better you will be prepared for the times to come.