Currently, there isn’t a centralized securities lending platform in Israel. Hence, more than two years ago, the Tel Aviv Stock Exchange (TASE) set out to create a blockchain-based securities lending platform. Today it says members started testing in March and it will launch the solution in November.
Because most Israeli securities lending is currently inter bank or outside of banks, the aim is to increase the capacity to lend larger volumes by launching a blockchain-based platform.
The centralized solution uses distributed ledger technology (DLT) Hyperledger Sawtooth. By sharing the data between organizations, there is no need for reconciliations, which makes lending and unwinding positions aster and cheaper. TASE outlined the benefits of peer-to-peer transactions, smart contracts, security through immutability, and cost reductions.
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