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- TASE announced that Israel will adopt blockchain technology from November 2.
- Early this year, TASE members completed the test phase of the blockchain lending platform much in advance of the production phase.
- Several Israeli Universities have pioneered in the blockchain research sector and the blockchain startup landscape has paved the way for a smooth DLT platform transition.
The Blockchain technology will make its debut in Israel, with the Tel Aviv Stock Exchange (TASE) announcing that it will launch the country’s first-ever central blockchain securities lending platform on November 2, 2020. It will be based on Distributed Ledger Technology that will enable direct lending to a variety of securities. The chronologically updated system uses a private and a public key without disclosing the identity of the parties doing the transaction. The blockchain ecosystem will cater to securities with a short-term duration using the inter-bank mechanism.
Initial testing completed in March 2020
Early this year, TASE members completed the test phase of the blockchain lending platform much in advance of the production phase. The technology will empower its users to complete transactions with transparency and immutability. The interbank clearing and settlement system reduces the processing time for transferring securities and simplifies the financial ecosystem. In 2015, the total value of Israeli mergers and acquisitions in high-tech stood at $8.4 billion.
It enables the financial market to exploit its full potential by providing security to investors and custodians. The direct peer-to-peer transactions form the basis of the new trading platform. As Orly Grinfeld, EVP and Head of Clearing at TASE, puts it that the state-of-the-art platform will provide a one of its kind lending pool to its users. The technological advancements of the financial market were mainly possible due to the government support at hand combined with the strong research and development focus.
Expansion of Fintech in Israel
Israel has been home to more than 430 fintech companies since 2016. Several Israeli Universities have pioneered in the blockchain research sector and the blockchain startup landscape has paved the way for a smooth DLT platform transition. With the opportunities for investment being plentiful, the have opened many floodgates for the government as well as businesses.
The potential of blockchain technology in developing solutions for various businesses is on a wide scale. The Israeli fintech community boasts of a strong cyber-security algorithm difficult to bypass by any hacker.
