The role of blockchain is not limited to cryptocurrencies. In fact, it is known for being able to maintain a distributed ledger for all transactions. What this means is that the technology can be integrated into stock exchanges around the world to speed up trade settlement through automation and decentralization.
Global and Asian stock exchanges have launched blockchain-based trials for clearing and settlement, post-trade, and securities issuance, according to an insight from the intergovernmental organization Organization for Economic Co-operation and Development (OECD). The Hong Kong Stock Exchange (HKEX) and the Australian Stock Exchange have reportedly entered into a partnership to work on upgrading their over-the-counter trading platforms and post-trade systems. “I think stock exchanges were one of the early adopters of blockchain technology in global trading. is leveraging Distributed Ledger Technology (DLT) to facilitate the settlement of trades by investors,” said Associate Professor Vani Majumdar. The educational institution, KLH Global Business School, told FE Blockchain:
Market analysts say the impact of blockchain on global stock exchanges such as the New York Stock Exchange (NYSE), Nasdaq and Bombay Stock Exchange will help reduce transaction costs and increase liquidity in the business environment. I expect. According to the International Journal of Management, a quarterly peer-reviewed academic journal, it is possible to trade digital stocks or stock tokens even if the stock exchange is closed because they are not listed. Additionally, equity tokens help pave the way for trading in global markets that investors may not have access to.
“The impact of blockchain on the stock market is a low operating cost, fraud-free, secure, fast (using blockchain 3.0), user-friendly stock market for the general public, and an open market for all participants. I believe it means it is an easy liquidity option for the stock market can expect to save nearly 70% of their operating costs Blockchain global market share is rapidly growing with Bitcoin and Ethereum ,” said Ravindhar Vadapalli, professor of blockchain, analytics and finance at the educational institution, Lovely College Mittal Business School.
Companies reportedly expected to indoctrinate blockchain-based stock trading practices include FedEx, International Business Machines (IBM), Walmart, Microsoft, Overstock, Mastercard, Oracle Corporation, Novartis, and others. will be As reported by blockchain software company ConsenSys, the use of blockchain in capital markets can help provide use cases such as issuance, stablecoins, collateral management, asset servicing, and mutual fund management.
“Financial markets, primarily equities, are traded in highly liquid products with short maturities (less than one year) and are characterized by a degree of security and low interest rate returns. At the wholesale level, money markets includes a high volume of transactions between institutions and traders.At the retail level, this includes money market mutual funds purchased by retail investors and money market accounts opened by customers of banks.” Sathvik Vishwanath, co-founder and CEO of currency exchange Unocoin, emphasized.
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