Borsa Italiana, owned by the London Stock Exchange, has reportedly collaborated with IBM on a project digitizing the issuance of securities for SMEs i
Borsa Italiana, owned by the London Stock Exchange, has reportedly collaborated with IBM on a project digitizing the issuance of securities for SMEs in Europe.
The project is reportedly designed to digitize securities certificate data, replacing the paper commonly issued to private companies, as Finextra (finextra.com) reported.
The system creates a distributed shared registry containing record of all shareholder transactions. The latter promises a more streamlined and transparent process that gives issuers, regulators and investors increased insight into company information, as the article added.
Usually, private SMEs lack access to public stock exchange networks or formalized credit structures. Borsa Italiana uses the blockchain system in an effort to give these companies better access to credit and access to a larger investor ecosystem.
“Through our work with IBM on this blockchain solution, Borsa Italiana is taking the lead in transforming the way European SMEs can manage their shareholder data and at the same time expand credit access – all on a trusted digital platform.”, as Raffaele Jerusalmi, CEO, Borsa Italiana, said.
The technology relies on Hyperledger Fabric version 1.0 and makes sure that hihgly sensitive securities data can be shared in a permissioned network of participants. The technology is currently undergoing a test phase with a small group of partners and clients, as Finextra explaiend.
“Sharing secure and transparent critical network data across shareholder networks is difficult using traditional system.”, said Marie Wieck, GM, IBM Blockchain.
“Blockchain is poised to help remove some of these barriers in traditional methods for the transfer of value – much as the Internet did for the exchange of information in the late 1990s.”, as she elaborated in an intervie with the online media.