Central Blockchain Securities Lending Platform

2020: TASE starts the platform on a blockchain for the securities lending

At the end of July, 2020 the Tel Aviv stock exchange announced start of the platform using a blockchain. The new solution which received the name Central Blockchain Securities Lending Platform is designed to provide the uniform national market for all operations on the securities lending.

Usually providing securities is as a loan performed using interbank mechanisms, but as a result the market cannot satisfy completely potential needs of participants of the economic relations. The new platform solves this problem as it will provide to the Israeli enterprises access to large volumes of securities during the short time frames so they will be able to perform loans and the securities lending for a direct covering of short-term asset sales.

The Tel Aviv stock exchange will use a blockchain platform for the securities lending

The Tel Aviv stock exchange noted that use of technology of the distributed register (DLT) as a basis for a new trade platform will allow market participants to take main advantages and functions of a blockchain. Among other things the stock exchange is attracted by P2P-transactions, "smart" contracts and the increased safety which is ensured by stability of a blockchain.

Staff of the exchange held testing of the platform since March, 2020 and intends to start the full version at the end of the same year. Preliminary date of start - on November 2. The head of clearing department of the exchange of the Orly Grinfeld (Orly Grinfeld) notes:

The technology of a blockchain will provide the new security level for the securities lending and will support growth of transactions.

The new platform should improve customer service of the exchange and also cut down expenses. Grinfeld is sure - when blockchain technology replace a difficult and separate credit granting system, they will allow lending market to implement completely securities the potential.^[1]

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