One of the London Stock Exchange groups, Borsa Italiana has announced its plans to use blockchain technology for private equity shares.
The London Stock Exchange group has taken an important step towards adopting blockchain technology. The group has partnered with technology giant IBM to create a new platform.
IBM has also recently started using blockchain against cyber attacks.
According to the report, this new platform The platform to be established will be used to digitally print private shares of small and medium-sized companies in Italy.. Blockchain technology will be used by Borsa Italiana, the Italian operator of the London Stock Exchange.
Today, exchanges and companies of all sizes, from small to large, are slowly starting to switch to blockchain technology.. When the transparent and stable structure of the blockchain is combined with the fast transaction capability of cryptocurrencies; distributed ledger technology is perfect for these industries.
With the introduction of blockchain technology, Borsa Italiana will be able to easily record and track the share patterns of unlisted companies.
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Using this technology will eliminate the need for paper record keeping as it used to be. The data on the platform can be easily accessed.. In addition, from the moment the organizations that will join the platform are received, the data will be available to be uploaded to the platform as needed.
David Harris, responsible for this technology of the London Stock Exchange Group:
“As these companies grow, they will be able to interact better with their shareholders.”
This project of Borsa Italiana will be in the trial stage for a certain period of time.. Only a small group of key customers and partners will take part in the testing phase. If everything goes well, this process can spread to wider audiences.