Tel Aviv Stock Exchange to create crypto platform
The Tel Aviv Stock Exchange (TASE) on October 24 revealed the creation of a blockchain-based platform to expand its trading services to cryptocurrencies and other digital assets as part of its new strategic plan for the years 2023 to 2027.
The exchange stated about its investment in crypto and the establishment of a digital asset platform:
“TASE will promote the implementation of innovative technologies, including DLT, tokenization of various classes of digital assets and smart contracts. TASE intends to investigate several potential plans of action, including conversion of existing infrastructure to innovative technologies, deployment of innovative technologies to specialized platforms, offers a basket of services and products for digital assets and more.”
In addition, the five-year plan will include the development and sale of technological solutions and services to other exchanges and market participants, expanding the market reach and transition to a private company model through the creation of a new listed holding company with 100% ownership of the exchange.
The subsidiaries will function as units in the new holding company. “The new structure will consist of a holding company with several subsidiaries (both existing subsidiaries and subsidiaries that will be established to further the objectives of the plan),” said TASE, which went public in 2019.
Within the new strategic plan, TASE’s management has set a five-year CAGR revenue target of 10% to 12% from organic growth. The transformation of TASE’s ownership structure may also include “implementation of a plan for strategic purchases and/or investments in its business areas and/or in areas that add value to the business”, the company stated, referring to a possible acquisition. – plan for foreign and small exchanges.
The plan, which TASE claims was based on an analysis of industry trends, came days after the company announced a partnership with Israel’s Ministry of Finance to test a blockchain-backed platform for digital bond trading. Under the name Eden, the bonds will be issued by the Ministry of Finance, and the project aims to reduce costs and streamline the issuance of national bonds.
Related: BIS marks CBDC pilot ‘successful’ with $22m transactions
TASE announced in September its partnership with the Bank for International Settlements (BIS), along with other central banks, to explore the use of central bank digital currencies (CBDCs) for international retail and remittance payments. The collaboration, called Project Icebreaker, will involve testing key features and the technological feasibility of interconnecting domestic CBDCs via proof-of-concept systems.
