Tel Aviv Stock Exchange to set up a blockchain-based digital asset trading platform

Through a strategy document published on Monday, the Tel Aviv Stock Exchange (TASE) has outlined that it is looking to set up a digital asset trading platform.

Establishing the digital asset trading platform is one of the four TASE goals outlined in the strategy document that lays out the institution’s roadmap for the next five years.

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Promoting implementation of innovative technologies

Jurisdictions around the world are slowly warming to the idea of incorporating the various elements of the technologies that underpin crypto markets into the existing financial markets. The Tel Aviv Stock Exchange does not want to be left behind.

The European Union has, for example, approved a pilot to test the use of distributed Ledger Technology (DLT) to settle trades directly. The European Council also passed the landmark Markets in Crypto-Assets (MiCA) regulation.

According to the document, TASE is looking to:

“Promote the implementation of innovative technologies” and will explore the use of distributed ledgers (DLT) for immutable record-keeping, tokenization and smart contracts (which can be used to execute crypto trades) to improve existing markets infrastructure, and offer digital asset “services and products.”

In the document, the CEO of TASE Itai Ben-Zeev said:

“We see in the next five years a critical window of opportunity for the integration of the Israeli Stock Exchange in the technological revolution that the world’s capital markets are going through.”

Israeli regulators and lawmakers have indicated that it is interested in supporting regulated crypto activities in the country. Earlier this year, Israel’s capital markets regulator issued its first licenses for crypto service providers. Tel Aviv Stock Exchange is also working with the Ministry of Finance to issue a blockchain-based digital state bond.