A few years ago, few financial experts would have bet that the token would gain space in one of the world’s investment cradles: blockchain technology on the London Stock Exchange, but this union is about to happen.
The London Stock Exchange manager is working on the design of a traditional asset trading platform using this distributed database and all the benefits it can provide to the asset buying and selling processes.
The objective of the LSE is to amplify the reach of business and enable transactions that are currently complex or unfeasible through traditional means, such as triangular operations – issuer, buyer and the location of assets are different places.
Blockchain fits perfectly into the perspective of streamlining business with a high level of security and transparency.
How will this transformation in the world of investments be carried out and what will be its positive impacts on the business tokens market?
BLOCKBR, a company that develops tokenization infrastructure, will talk about blockchain at LSE, another fundamental milestone for the digitalization of business!
LONDON STOCK EXCHANGE AND BLOCKCHAIN TECHNOLOGY
Without a doubt, the popularization and maturity of blockchain in various business sectors and investment products are fundamental to this historic decision-making – with the project implemented, LSE will be the first stock exchange with a blockchain-based financial ecosystem.
The success of cryptocurrencies in the hands of stock market investors was the first triggering fact and the tokenization of assets brings a greater layer of credibility to the technology as the token is today related to business modeling.
Tokenizing real, financial assets – including assets offered on the stock exchange – and even company rights requires high-level technological and transactional infrastructure such as that made available by BLOCKBR for the token projects that the company develops.
It is this capillarity of blockchain in business that LSE is counting on to take a decisive step in the technological advancement of its operations.
Do you know what tokenization infrastructure is and how it is fundamental for business with transactional tokens? Discover BLOCKCBR’s differences!
ADVANTAGES OF BLOCKCHAIN ON THE LONDON STOCK EXCHANGE
The benefits of blockchain in business and cryptocurrencies can be replicated in stock exchange transactions, boosting the quality of purchases and sales of financial assets. Let’s talk about some of them.
GENERATE MORE EFFICIENT AND SAFE OPERATIONS
This is a benefit of blockchain throughout the entire chain of processes involving the issuance, custody and offering of financial assets: everything becomes more agile, safer and more transparent.
- The network operates with a much greater processing capacity and this creates more agile operations, favoring investment decisions;
- The immutability of data and the consensus protocol eliminate the possibility of fraud;
- The smart contract automates the entire chain and provides transparency, essential to attract people who are unfamiliar with investments.
PROCESS CLEARING MORE AGILE AND WITH LOWER COSTS
An important differentiator of blockchain in stock exchange operations is optimizing clearing operations – clearing, settlement and custody of securities – with different participants and costs.
Using the blockchain network, data is distributed directly between parties, which significantly reduces clearing costs and speeds up the process by removing intermediaries. Furthermore, with faster operations, the risk of buyer default is mitigated.
INCREASE AVAILABILITY AND REACH
Blockchain technology does not sleep; it is possible to use it uninterruptedly and this factor is fundamental to the success of the tokenization of real assets and commodity tokens, such as the tokenization of gold and agribusiness production.
In addition to not sleeping, the blockchain does not stand still, it is a technological ecosystem that exists due to its global reach, which will allow people in different countries to invest in shares on the London stock exchange.
Obviously, these conditions will be subject to local regulatory mechanisms, but it is a fact that they will be differentiators in considerably expanding the business base.
DEMOCRATIZE INVESTMENTS
The complexity of transactions and costs deter investors who are able to invest in securities on the stock exchange. With simplification, a high level of security and cost reduction, it is possible to bring exchange-traded assets closer to small and medium-sized investors.
HOW THE IMPLEMENTATION OF BLOCKCHAIN ON THE LONDON STOCK EXCHANGE WILL BE DONE
The LSE Group, manager of the British stock exchange, is studying the creation of an independent entity to apply blockchain in the market, separate from the unit that currently manages businesses carried out on traditional bases.
In a first stage, there are no plans to trade cryptocurrencies but rather to improve the efficiency of trading and asset management and prepare the organization for triangular operations – issuer, investor and asset in different locations.
Serving this type of transaction with the current technological and process infrastructure requires high expenditure that would impact the cost of operations.
Another important objective is to allow participants from different jurisdictions to interact and generate business simultaneously, which is not possible in the current technological model.
The forecast is that the first blockchain-based stock exchange market will begin operating in 2024, after negotiations with several jurisdictions, the Treasury and the British government and obtaining approvals from regulatory bodies.
TOKENIZE YOUR ASSETS WITH BLOCKBR!
Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.
Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.
Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?
Come and talk to BLOCKBR.
We have the best token offering strategy on the market!
INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!
Buying token is not complicated if you invest with someone who makes it easy! Just open an account with a qualified asset tokenization company and create a digital wallet to store your applications.
Access our token marketplace, learn about the most varied offers and choose the ones that align with your investor profile. And you can start investing in digital assets for as little as 50 reais!
Open your account with BLOCKBR and earn more with your investments!
BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.
For more information, visit: http://www.blockbr.com.br or @blockbr_ on social networks
