Yesterday the Tel Aviv Stock Exchange announced a major infrastructure partnership with Fireblocks for digital assets. TASE says it plans to “offer a comprehensive range of innovative and secure digital asset products and services.” This follows a digital asset strategy announced by the stock exchange last October.
Two months ago TASE said it successfully completed a government bond issuance trial with the Ministry of Finance. The proof of concept involved five local banks as well as six big name global banks including BNP Paribas and JP Morgan. Fireblocks was one of the partners.
But we believe the partnership will involve a lot more than bonds and tokenizing conventional securities. When it unveiled its five-year strategy, TASE outlined plans to use DLT to transform trading, clearing and custody of conventional securities.
It also expressed an interest in other digital assets including cryptocurrencies, utility tokens and NFTs. It followed that up with a consultation this February exploring rule changes to allow licensed securities brokers to get involved in crypto.
“We are unwavering in our pursuit of revolutionizing the industry and the local capital market, and this collaboration epitomizes our dedication to delivering secure, regulated, and innovative digital asset solutions,” said Orly Grinfeld, EVP Head of Clearing at TASE. “Together, TASE and Fireblocks are set to reshape the future of finance and unlock unparalleled opportunities for growth.”
Meanwhile, Fireblocks started off providing a crypto custody technology solution but has significantly expanded its range of services after raising more than $1 billion in venture funding. Other Clients include BNY Mellon, ABN Amro, BNP Paribas, National Australia Bank and SDX.
TASE is not the first stock exchange to embrace digital assets and tokenization. One of the most advanced is Switzerland’s SIX with its SIX Digital Exchange (SDX). And Deutsche Boerse-owned CSD Clearstream launched blockchain-based D7 as a digital registry. On the other hand, Nasdaq recently dropped plans to provide crypto custody given the regulatory environment in the United States.