Tel Aviv Stock Exchange Develops 'First Of A Kind' Blockchain Lending Platform

The Tel Aviv Stock Exchange has developed a "First of a kind" blockchain-based securities lending platform, according to a press release May 16.

The new platform was completed in partnership with Israeli fintech firm The Floor, global professional services company Accenture, and Intel.

The exchange will reportedly create one central platform called Blockchain Securities Lending, which aims to revolutionize the securities lending market in Israel "By enabling direct lending among all the major financial instruments." The platform will be designed as a "One-stop-shop" for all operations with securities lending and provide access to larger securities volumes in shorter terms.

The platform will be built on Hyperledger Sawtooth that utilizes Intel Software Guard Extensions technology to encrypt transaction data.

Accenture will be working on the development of smart contracts on the platform, which is one of Hyperledger Sawtooth's major business attributes.

Rick Echevarria, Vice President of Software and Services Group at Intel, noted the significance of blockchain for the financial services market, saying that Intel "Believes blockchain can transform business processes", while Accenture is working on a solution that "Accelerates blockchain adoption."

Traditional financial institutions have begun to see the advantages blockchain can add to their business processes.

Last month, Banco Bilbao Vizcaya Argentaria became the first global bank to issue a loan using blockchain technology.

Recently, Sberbank CIB, the corporate and investment banking business of Russia's largest bank Sberbank, conducted the first blockchain-based commercial bond transaction in Russia.

Sberbank CIB organized the issue corporate bonds using smart contracts, while the transaction was carried out on the Hyperledger Fabric 1.1-based blockchain platform.