London Stock Exchange to Adopt Blockchain Tech (Whilst Neglecting Crypto)
5 Sep 2023 by Rory Kejzerko 2 min read
London Stock Exchange to Adopt Blockchain Tech (Whilst Neglecting Crypto)

In a move that could expose Web3 tech to the masses, the London Stock Exchange (LSE) is considering using a separate legal entity for blockchain-based business markets- however not necessarily for crypto…

Such news came today via the Financial Times, with the LSE Group's ‘Head of Capital Markets’ Murray Ross being the bearer of news to Britain’s most illustrious business news publication. 

Although the inclusion of ‘blockchain technology’ may have gotten you excited at first, Ross has explicitly denounced the involvement of crypto within the initiative. Further, the plans will revolve around leveraging underlying blockchain technologies to allow a ‘slicker, smoother, cheaper, and more transparent’ experience when trading and holding traditional digital assets (with the key word here being ‘traditional’). 

Of course, the use of blockchain tech across the LSE will also come with regulations, which is why the entity is already said to be in discussions with the UK government and Treasury, as well as other regulatory jurisdictions. 

The move - which comes as the LSE reaches an ‘inflection point’- would mark a landmark moment in bureaucracy, as it’ll see one of the world’s oldest and most notorious stock exchanges adopt a new, decentralised, and distinctly different method of asset trading. 

If you’re up to date with developments across global finance, you’ll already know that the LSE isn't the first financial institution to flirt with the idea of deploying blockchain technology. For example, the World Gold Council’s Chair Randy Smallwood has recently made his reservations about Bitcoin (BTC) public, stating that “it doesn’t have any backing,” and that instead, “the world right now needs a gold-backed digital token that, through the blockchain, represents physical gold and can be freely traded”. 

For many, the traditional deployment of blockchain tech aligns with the fundamental mission of Web3, as instead of the space revolving around money making opportunities from crypto and NFT projects- i.e. what Web3 is predominantly known as in the mainstream- its true utility is realised when applied across contexts that involve society-wide ownership, data storage, and transactions models etc. 

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This article is intended for educational purposes and is not financial advice.