Blockchain solutions have been readily taken into consideration these days in the securities market. The latest trend of blockchain driven securities lending has taken over several stock exchanges across the world. The latest addition in the list is Deutsche Börse Group which is one of the largest stock exchanges in the world. The company made a recent announcement that the company will be launching blockchain based securities lending solution by the first half of this year. This project will be developed in collaboration with HQLA X, a financial technology firm that deploys distributed ledger for collateral management solutions.
Both the firms will work together in a joint partnership for the securities lending solution that will make use of the Corda Blockchain technology introduced by R3. The main objective of this solution is to managing high-quality liquid assets efficiently. Blockchain has carved a niche for itself in the fintech sector because of its wonderful qualities like immutability and transparency to develop highly secured and fair systems. Such platforms offer autonomous control for the participants along with tamper-proof records and data.
Deutsche Börse Group senior official, Jens Hachmeister stated that actual application of this technology establishes both its potential and significance. It also helps in enhancing transparency, liquidity, securities and efficiency of the financial sector. He further added that their firm is looking forward to establishing distributed ledger technology and blockchain solutions in other areas as of their business as well as mentioned by Deutsche Boerse.
Blockchain Technology And Securities Markets
According to Forbes, blockchain enabled tokens can be turned into legally compliant securities which have huge potential to turn a big business. The tokenized securities offer much more self-regulating phenomenon and are very much advanced in terms of technology. Indeed, this is comparatively a new trend which is not yet completely accepted but the change has already begun. The novel blockchain solutions are offering new ideas and methods for easy and convincing trade practices.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]