Israel Stock Exchange to Enter Digital Asset Market in Partnership with Fireblocks
Date: 2023-08-04 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
The Tel Aviv Stock Exchange plans to trade tokenized assets for institutional clients using the blockchain
Israel plans to open access to the digital asset market for large investors through its stock exchange. The Tel Aviv Stock Exchange reported this in a press release. According to the announcement, the local company Fireblocks will be responsible for the development of the blockchain solution.
Representatives of the stock exchange admitted that the digital asset industry has recently faced difficulties due to "the immaturity of some decisions or the lack of relevant knowledge and experience." However, now, as they say in the stock exchange, it is becoming more and more obvious that the fusion of innovative solutions, traditional finance and the regulated system "has priceless value". It is not specified what products the parties will deal with. The press release does not say whether it is about cryptocurrencies. Instead, the exchange claims that it will first work with Fireblocks on the tokenization of assets, as well as the creation of new markets.
Israel's interest in asset tokenization has been traced back to 2022. Then the editors noted that the Ministry of Finance of Israel launched testing for trading in digital government bonds jointly with Fireblocks. Yala Rotenberg, the accountant general of the Ministry of Finance of Israel, noted at the time that blockchain-based technologies would eventually penetrate the foundations of financial markets, "fundamentally and profoundly changing them." The Tel Aviv Stock Exchange also took part in the experiment.
The digital state currency is also being looked at in Israel. In April 2023, the Bank of Israel's steering committee for the possible issuance of a digital shekel disclosed several scenarios for the launch of a digital currency called SHAKED. According to the statement of the regulator, the launch of the digital national currency may take place in the event of increased activity in the use of the stablecoin. According to the Central Bank, the introduction of stablecoins can "deteriorate the payment system", and the lack of peg to the shekel can also damage the transfer system.
