London Stock Exchange Group wants to build digital market with blockchain technology

Traditional finance is increasingly turning to cryptotechnology. The London Stock Exchange Group wants to use blockchain technology to boost tokenization.

According to Murray Roos, head of capital markets at LSEG, the project has been under consideration for about a year and is now at a tipping point. The result? An implementation really does seem to be coming now. This is evidenced by the fact that the LSEG is already in talks with regulators in several jurisdictions, as well as the British government and the Treasury, according to the Financial Times.

Roos emphasized that LSEG is "not building anything around cryptoassets," but is instead focused on using blockchain to improve the security and accessibility of asset trading. The financial firm is betting on this technology to implement the growing interest of "tokenization" of assets.

Tokenization makes it possible to create partial ownership of assets, and thus liquidity will go up. It also provides access to assets traditionally considered illiquid - a specific example being the old stadium seats of the Eintracht Frankfurt soccer club.