Israel uses blockchain technology for digital asset trading platform

The Tel Aviv Stock Exchange (TASE), Israel’s only stock trading platform, has announced that it will venture into virtual currencies with the introduction of a digital asset trading platform.

The TASE trading platform will be built using blockchain technology, according to the exchange’s strategic document. The plan to turn to blockchain has been in the works for the exchange as it has experimented with implementing “innovative technologies,” including smart contracts and tokenization.

Creating a digital asset trading platform forms part of four critical objectives for TASE, which include improved engagement with end customers, selling technical services to other exchanges, entering the ‘crypto’ worlds and improving the value proposition of TASE’s core business. The goals are expected to be completed within a five-year period.

“The next five years are a critical window of opportunity for TASE to play an active role in the technological revolution of the global capital markets,” said Ittai Ben-Zeev, CEO of TASE. “The plan anticipates the market’s needs and takes the development and management of innovative services and products to the next level.”

In venturing into digital services, TASE notes that it will explore a number of action plans, with conversion of existing infrastructure to blockchain at the top of the options. The move will also see TASE offer a basket of services tailored to users of digital assets and may include “deployment of innovative technologies to specialized platforms.”

In the document, the exchange confirmed that it had achieved its previous five-year goals, which included converting from a non-profit to a profitable firm and becoming a major player in Israel’s capital market.

Israel strives for digital asset leader status

Israeli administrators have moved toward using blockchain to revamp certain key sectors’ operations, with the financial industry having the most applications.

The country’s Ministry of Finance and TASE revealed that they will collaborate on a government bond issuance pilot in an effort to institutionalize digital assets. The pilot will involve technical assistance from Fireblocks and VMware, firms with previous experience in Israel’s digital services ecosystem.

The country’s central bank has also conducted several experiments for the launch of its central bank digital currency (CBDC) and has issued several licenses to operators of digital services that meet the minimum standards.

Israel faces a stern test to assert its dominance amid fierce competition from emerging digital asset hubs such as the United Arab Emirates, Saudi Arabia and Bahrain in the Middle East region.

See: BSV Global Blockchain Convention panel, Blockchain Venture Investments: Driving Utility for a Better World

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