In a press release published on May 16th, the “first of a kind” blockchain based lending platform was launched by the Tel Aviv Stock Exchange (TASE). The stock exchange has partnered with three fintech and tech companies set up the blockchain platform. These are Israel’s fintech firm “The Floor”, Accenture and Intel.
It is expected that the central platform system named, the Blockchain Securities Lending (BSL), will change the securities lending market in Israel. Consequently, it will enable “direct lending among all the major financial instruments.” All operators can use this platform as a “one-stop-shop” for all operations, hence lending securities in large volumes quickly.
The TASE main objective to implement blockchain technology to its security service is to obtain more profits with peer-to-peer transactions, smart contracts and enhanced securities.
How is the BSL build?
The blockchain platform for BSL is built on Hyperledger Sawtooth that works with Intel Software Guard Extensions technology, used to encrypt transaction data. Smart contracts will be incorporated in the platform by Accenture with the help of Hyperledger Sawtooth.
It was reported that Vice President of Software and Services Group Intel, Rick Echevarria stated that Intel “believes blockchain can transform business processes”. Meanwhile, Accenture is trying to “accelerate blockchain adoption”.
After a successful implementation of the initial Proof of Concept (PoC), it is estimated that the project will deploy a production environment. Indication on the trading of TASE are T-35, T-125 and the TA BlueTech Index. Furthermore, the market capital exchange of TASE is of $212 billion.