London Stock Exchange Group to use blockchain tech to record unlisted securities

posted 12 months ago
London Stock Exchange Group will use blockchain technology to help unlisted businesses make shareholding information more transparent.

It will use Hyperledger technology to make the information of small and medium sized private companies digital, which the exchange hopes can give them access to more mature investors.

A small trial will initially begin with Borsa Italiana, the Italian stock exchange. A shared registry of shareholder transactions and records will be held on the blockchain, but only between authorized participants such as issuers, investors and regulators, switching from traditional paper-based trading certificates.

"We are testing the use of blockchain technology in a financial business network where data segregation and confidentiality is vital," said chief operating officer and chief information officer of London Stock Exchange Group (LSEG), Chris Corrado.

LSEG joined the open source blockchain project Hyperledger in late 2015 along with IBM and several other financial institutions. It is also part of the Post Trade Distributed Ledger Group of nearly 40 financial institutions, clearing houses and exchanges such as Euroclear, HSBC and CME Group, working on the technology.
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