IBM and the London Stock Exchange Group (LSEG) have announced that they are working on a project using blockchain to help SMEs in Europe digitise and manage shareholder data.
Borsa Italiana, the Italian subsidiary of LSEG, is using IBM Blockchain to help SMEs in Europe better access credit and link into a more mature investment ecosystem by digitising certificate data.
Traditionally, these companies lack access to public stock exchange networks or formalised credit structures, but with this project, Borsa Italiana is helping these businesses more easily trade and operate within the market.
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With the blockchain solution, Borsa Italiana is taking the lead in transforming how unlisted companies in Europe can exchange and bring greater transparency around shareholder data and expand their access to credit – all on a trusted digital platform. This is the latest in a series of stock exchanges that have announced they are turning to IBM Blockchain powered by Hyperledger Fabric for the superior security and proven enterprise expertise it delivers.
“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 today. With a more digitized, streamlined and transparent process enabled by the blockchain solution, various parties – including issuers, regulators and investors – will have increased insight into company information.
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Traditionally, private SMEs lack access to public stock exchange networks or formalised credit structures. With this solution, SMEs in Europe can better access credit and link into a broader and more mature investor ecosystem, enabling them to set up new trading networks and obtain funding by sharing financial data in a security-rich and transparent public arena. By implementing the blockchain solution, Borsa Italiana is taking the lead in transforming how private companies can exchange and bring transparency around shareholder data and expand credit access.
“LSEG is testing the use of blockchain technology in a financial business network where data segregation and confidentiality is vital. By working with IBM, a pioneer in building enterprise-class blockchain solutions, we are committed to building, testing, and scaling our capabilities in emerging technologies over time,” said Chris Corrado, Group COO and CIO, London Stock Exchange Group.
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“Sharing secure and transparent critical network data across shareholder networks is difficult using traditional system,” said Marie Wieck, general manager, IBM Blockchain.
“Blockchain is poised to help remove some of these barriers in traditional methods for the transfer of value – much as the Internet did for the exchange of information in the late 1990s.”
