On May 2, CNBC published an interview with Nikhil Rathi, the CEO of the London Stock Exchange, a 300-year old trading venue. In the interview, Rathi gave hints that the LSE is looking at blockchain technology.
Here’s what we know.
LSE Interested in Blockchain
According to CNBC, Nikhil Rathi, who has been the CEO of the LSE since 2015, said the exchange is keeping an eye on blockchain. He also said the LSE has noticed an “interesting array of different ideas,” from competing exchanges. Before the exchange, which is one of the oldest in the world, moves into the blockchain sector, however, Rathi says it is waiting to see which ideas “gain market traction.”
While Rathi said the LSE is waiting to make a move, the CEO did hint at areas in which the exchange has been looking at. “You can certainly see distributed ledger technology having an application in the issuance process. I can see that technology being used in settlement too,” he told CNBC. If this is the area the LSE is looking to move into, we could soon see the London Stock Exchange using distributed ledgers for settling trades and issuing stocks.
Are We Surprised?
As monumental as it would be for the LSE to add blockchain to its technology inventory, the possibility of this happening isn’t surprising. Why? Because the London Stock Exchange has previously been open about its focus on blockchain technology. In 2019, the exchange purchased a minority stake (the exact amount of the investment was not disclosed) in Nivaura, a London-based blockchain startup.
What do you think about the LSE looking at blockchain use? Do you think it would be beneficial if the exchange used distributed ledgers for settling trades? Let us know what you think in the comments below! And be sure to keep an eye on this story!
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