Many stock operators across the world have unveiled blockchain based system for transacting scrips
The South Korean financial regulator has suggested using blockchain for stock trading in a study released on Thursday.
The Financial Supervisory Service’s (FSS) report cited the use of blockchain in stock transactions in the United States, Japan, and Australia, reported Korea JoongAng Daily. The FSS called on the country’s regulatory agencies and companies to work together on developing such a system.
Compared to conventional systems, the blockchain technology promises safer and tamper-proof ledger to track transactions. The technology ensures this by hosting a copy of ledgers at all devices connected to its network.
Many stock operators across the world have unveiled blockchain based system for transacting scrips. For instance, the London Stock Exchange Group is using the technology to issue private shares in small and medium-sized enterprises.
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Similarly, Nasdaq Linq, a system by the New York-based exchange transfers the private stocks in the pre-initial public offering stage.
On the other hand, Australia took it a step further and it plans to replace its existing clearing and settlement system with a distributed ledger-based alternative by 2021. The alternative, however, will be invitation only.
The FSS report pointed out that the application of blockchain in the stock market in Korea was still in the initial stages. It added that there should be no barrier between public institutions and private companies in developing a blockchain system.