The CEO of the London Stock Exchange (LSE), one of the world’s oldest stock exchanges, believes that blockchain could have a use in issuing securities and settlement. CNBC reported on the CEO Nikhil Rathi’s comments on May 2.
Specifically, Rathi expressed confidence about blockchain applications used in the issuance process, adding that he can also see the technology also being used for settlement.
The stock exchange’s CEO emphasized that the adoption of blockchain in capital markets needed to be carried out with caution due to some extreme manifestations of innovation in the crypto industry. Still, Rathi stated that he encourages technological competition and innovation in the capital market business.
The LSE has previously been involved in the crypto and blockchain industry. In February 2019, the exchange’s parent company, the London Stock Stock Exchange Group (LSEG), led a $20 million funding round in fintech startup Nivaura, which is reportedly developing the world’s first crypto-denominated, blockchain-settled bond.