Blockchain-based Stock Exchange Infrastructure

Bitcoin caught the world’s eye in 2017 and gave institutions a reason to consider the industry as a new asset class. While Bitcoin itself was in a price frenzy during 2017, the underlying technology that makes it possible became the highlight. Blockchain, as it is commonly referred to, implements traditional methods of ledger keeping while utilizing modern day digital technology. In doing so, it creates a more efficient, secure, and versatile vehicle for all different types of record keeping and transacting. In fact, major industries from supply chain/procurement to healthcare have launched their own research and development programs to experiment with Blockchain ledger technology in hopes of discovering new cost-effective methods for archiving, recording, and storing their data.

One industry heavily disrupted by the technology is finance. As digital assets become more and more popular, financial institutions and exchanges have begun to consider the underlying technology as a solution to streamlining the traditional and complex trading processes. With the introduction of blockchain solutions, stock exchanges would be able to facilitate more secure and cost-efficient transactions. So which exchanges are actively working on blockchain ledger technology?

SIX (Swiss Exchange)

The thirteenth largest exchange at $1.6 Trillion in market cap, SIX (Swiss Exchange), has recently announced that it will be launching its own blockchain integrated exchange known as SDX, or Swiss Digital Exchange. The new exchange will facilitate an almost instant settlement and title transfer after a trade has been initiated, offering a much faster and more secure trading than current processes. The new exchange will work concurrently with the traditional exchange and is expected to supersede it within a decade. The blockchain-based exchange will be officially launched in Summer of 2019.

Nasdaq

In addition to the extensive research and development they have put in to building out their very own blockchain protocol known as Linq, Nasdaq has recently partnered with Citi Group and Novogratz’s Galaxy Digital to raise $20 Million for enterprise blockchain solutions company built for mainstream adoption, Symbiont. Symbiont blockchain technology is tailored to institutions looking to increase transactional security, efficiency, and governance. Quite simply put, it is the Ethereum Smart Contract platform equivalent for institutions. 

Deutsche Börse

Since 2016, Deutsche Börse have been actively building out their blockchain-based securities lending platform for use in traditional capital markets. Using R3’s Corda Blockchain protocol, Deutsche Börse aims to offer more efficient securities settlements solutions for collateral management. Deutsche Börse plans on deploying more blockchain protocol in the future as the infrastructure builds out. As of late 2018, the bank has successfully completed their trial run using the new technology and is scheduled to launch the platform in the first half of 2019.