The Athens Stock Exchange (ATHEX) has announced plans to incorporate blockchain technology into its Electronic Book Building (EBB) system in collaboration with the Sui blockchain ecosystem. This move aims to enhance security, efficiency, and transparency for users of the platform.
Traditionally, the primary issuance process involves separate confirmations for securities allocation and settlement. However, integrating blockchain technology streamlines this process by consolidating these steps into a single confirmation. This integration is expected to result in faster and more efficient transactions for all parties involved, including the exchange, its members, investors, and issuers raising capital.
The integration of blockchain technology provides a significant security boost to the sensitive network of a stock exchange like ATHEX. Digital certificates inherent to blockchain transactions offer advanced security measures while being recorded on a public, immutable ledger, thereby reducing the risk of manipulation, a common challenge in traditional finance (TradFi). Additionally, this transparency facilitates regulatory oversight, allowing regulators to monitor trade activities more effectively for suspicious behavior.
ATHEX’s development of the EBB tool aims to serve as a future fundraising mechanism, enabling early-stage and mature companies to list transferable securities. According to a representative from Sui, ATHEX’s implementation of EBB positions it at the forefront of innovation compared to exchanges worldwide. Leveraging blockchain technology is expected to drive innovation while ensuring safety, security, and transparency, meeting the requirements of individuals and regulators.
While ATHEX leads in integrating blockchain into its operations, other global stock exchanges have also shown interest in the Web3 space. Notably, the London Stock Exchange (LSE) announced its intention to consider applications for Bitcoin and Ether cryptocurrency exchange-traded notes (ETNs) during the second quarter of 2024. This indicates a broader trend in TradFi toward openness and Web3-friendly approaches, although not necessarily blockchain integration.
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