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FLASHBACK FRIDAY: Blockchain Trading Technology Is Coming to the Capital Markets, Greenwich Says
Traders Magazine Online News, September 14, 2018
Blockchain - not much has changed in three years. Or has it?
The now eponymous blockchain or blockchain technology is still coming to the capital markets - but are there real large-scale users or acceptance of blockchain? At first glance, it might appear blockchain technology hasn’t become the Bluetooth of world just yet. Or has it? Are there big users that are just keeping usage under wraps?
Electronic trading venue tZero expects to answer the question within a couple of months with the planned launch of its blockchain-based trading platform for security tokens, according to company officials during Overstock.com's recent second-quarter earnings call.
“We’ll be issuing our tokens later in the fourth quarter and have those tradable on an exchange for international or non-US traders in mid- to late fourth-quarter,” said Saum Noursalehi, CEO of tZero, during the call.
Saum Noursalehi
The venue's initial focus will be on illiquid markets like the initial public offerings and private placement market, according to Noursalehi.
“We think there are considerable inroads to be made there in digitizing on the blockchain those offerings and simplifying the compliance and all the fees that go into the process,” added Seth Moore senior vice president strategy at Overstock.com.
Peter Randall, Chief Executive Officer at SETL, a blockchain-based settlement system for the investment funds industry told of his firm’s implementation of blockchain.
“With two production instances of high performance blockchains already deployed and with three more projects at advanced stages of development, SETL quietly delivers what others only talk about,” Randall said.
He explained that his two operational platforms -Iznes.io and Euro Commerical Paper - are already cutting costs, increasing volumes and lowering risks on a fully distributed basis. He added that projects for major asset-managers, issuers and trading platforms are also underway.
Peter Randall
In the meantime, the market's blockchain appetite continues to grow unabated.
North of the border, approximately a third of the 33 new listings on the TMX Venture exchange since the beginning of the year has been blockchain- or crypto-related firms, noted Lou Eccleston, the CEO of the TMX Group, during his firm's second-quarter earnings call.
The exchange itself is participating in multiple blockchain-related pilots, including projects like Jasper with Payments Canada and the Bank of Canada, but each is still in the learning phases, he added.
It is going to take the Canadian exchange operator awhile before it implements the technology within a new and consolidated clearing platform.
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