Blockchain and Stock Exchanges: Transforming Digital Securities Management

The Athens Stock Exchange (ATHEX) has announced plans to integrate blockchain technology into its Electronic Book Building (EBB) system. In collaboration with the Sui blockchain ecosystem, ATHEX will use blockchain to create digital certificates for securities, enhancing security, efficiency, and transparency for its users. This move aims to simplify the primary issuance process by merging securities allocation and settlement into a single confirmation, resulting in faster and more efficient transactions. By using blockchain, ATHEX hopes to increase security by eliminating the risk of manipulation and provide transparency for regulatory oversight. The integration of blockchain into a traditional finance setting has the potential to decrease the risk of primary issuance and improve capital raising and allocation efficiency.

The EBB tool being developed by ATHEX aims to be a future fundraising tool for companies to list transferable securities. The Greek stock exchange’s EBB has already been successful in re-launching its corporate bond market, with high demand and oversubscription. The goal is to leverage blockchain technology to increase innovation while maintaining safety, security, and transparency. When implementing blockchain at scale in the traditional financial market, it is crucial to prioritize the speed, security, and fees of the chosen blockchain network. ATHEX’s partnership with Sui positions it ahead of other exchanges in adopting Web3 tools.

While ATHEX leads the way in implementing blockchain in the stock exchange sector, other global exchanges have also shown interest in the Web3 space. The London Stock Exchange (LSE), for example, has announced its intention to consider applications for cryptocurrency exchange-traded notes (ETNs) in the second quarter of 2024. Although not a blockchain integration, the LSE’s openness to cryptocurrencies indicates a broader trend in traditional finance towards embracing Web3 technologies.

Fran Swartwood

Fran Swartwood

3 thoughts on “Blockchain and Stock Exchanges: Transforming Digital Securities Management

  1. I don’t see how merging securities allocation and settlement into one confirmation will make any significant difference.

  2. Why does everything have to be about blockchain nowadays? Can’t we stick to the good old ways of doing things?

  3. Yawn. Another article about blockchain changing the world. Wake me up when it actually happens.

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