IBM Blockchain technology will be used by the London Stock Exchange, to help unrecorded businesses make shareholding information clearer, replacing paper-trading certificates still in use by private companies with lower budgets.
Small and medium sized private companies will be using the Hyperledger Fabric 1.0 tech platform, helping businesses grow through trading and investing by simplifying shares.
The Italian stock exchange company, Borsa Italiana, will initially undertake a small trial by sharing records and transactions between authorised partners such as regulators, issuers and investors, held on IBM blockchain.
‘Data segregation and confidentiality is vital’
CEO of London Stock Exchange Group, Chris Corrado, said: “We are testing the use of blockchain technology in a financial businesses network where data segregation and confidentiality is vital.”
“Once you offer this structure to allow the ownership to be registered on a blockchain, you’re then opening a greater certainty as to the ownership structure, which adds to the transparency and certainty of what future investors in the company will be walking into,” added London Stock Exchange Group’s Head of Commercial Technology Innovation, David Harris to CoinDesk.
According to Market Watch, “IBM blockchain is the leader in open-source blockchain solutions built for enterprises.”
Written by Leah Alger