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LSEG's Borsa Italiana and IBM to develop securities data blockchain solution for SMEs

First Published 19th July 2017

Blockchain technology to expand SMEs' access to credit and enable shareholder data exchange.

Raffaele Jerusalmi, Borsa Italiana

Raffaele Jerusalmi, Borsa Italiana

London Stock Exchange Group's Borsa Italiana and IBM are building a blockchain solution to digitize the issuance of securities for small and medium enterprises (SMEs) in Europe.

Designed to simplify the tracking and management of shareholding information, the new system aims to create a distributed shared registry containing a record of all shareholder transactions, helping to open up new opportunities for trading and investing.

"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." said Raffaele Jerusalmi, CEO, Borsa Italiana.

The blockchain solution for unlisted SMEs in Europe is designed to replace the paper trading certificates that are commonly issued to private companies. With a more digitized, streamlined and transparent process enabled by the blockchain solution, various parties - including issuers, regulators and investors - can gain increased insight into company information.

Built on Hyperledger Fabric version 1.0, a blockchain framework and one of the Hyperledger projects hosted by The Linux Foundation, the solution is undergoing an initial test phase with a small group of partners and clients.