The LSEG is collaborating with IBM to develop a platform based on an opensource version of bitcoin tech called Hyperledger Fabric.
In a significant development for the development of bitcoin technology, the London Stock Exchange Group Plc is collaborating with IBM so as to build a blockchain-based platform for the purpose of issuing private shares of small and medium enterprises in Italy, digitally.
The platform is being developed by Borsa Italiana, LSEG’s Italian arm.
In a statement both companies stated, the joint effort is aimed at easing the tracking and exchange of shareholder information of unlisted businesses.
In the past, information on shareholders of small and medium enterprises has been maintained manually on spreadsheets or have been based on paper-based records.
With the advent of bitcoin technology’s shared digital ledger, the stock exchanges and the companies can now track information as well as interact with shareholders. Bitcoin technology will provide increased transparency on ownership of shares, said the LSEG in a statement.
“As these companies grow they will be better at interacting with their shareholders,” said David Harris, head of emerging technology at LSEG.
The exchange group is also hoping that the new technology being built using HyperLegder Fabric, a type of blockchain, will also make it easier for companies to access credit.
Recently, HyperLedger Fabric was recently released by Hyperledger, an open-source group led by the Linux Foundation, whose members include IBM and LSEG.
In recent years, financial institutions have been increasing their exposure and investment in blockchain technology in the hope that it can reduce the cost and complexity of business processes.
The new platform being developed will be compatible with the group’s existing systems.
Currently it is being tested with a small group clients and partners, said the LSEG.