20|30 has become the first organisation to issue shares of its business on the London Stock Exchange using blockchain technology. The fintech company has issued around £3million worth of
tokenised shares and is the first time blockchain technology has been implemented in a regulated financial market.
In response to this exciting development, Luke Saunders, Head of Digital Advisory and CTO at leading blockchain advisory firm AmaZix, commented:
It is very promising to see that blockchain-based shares for the Fintech company 20|30 have been accepted on the London Stock Exchange. While the
tokenisationof assets is nothing new, it is significant that one of the financial sector’s most important players is now embracing blockchain technology. This mirrors actions from some of the biggest financial firms, such as JP Morgan, who have looked at blockchain technology and its potential with greater interest over the last year.
The blockchain provides
organisationswith the ability for fast, decentralisedtransfers which are recorded in an immutable ledger. The transparency and security provided by this technology makesit an obvious choice for distributing shares and represents a viable evolution on modern trading.
While this announcement breaks new ground for blockchain technology in a traditional financial institution, it is certainly not going to be the last time we see
tokenisedassets or shares on other regulated trading platforms.”
Matt Hawkins, CEO at Cudo Ventures, a company that is using blockchain to trade computing power, commented:
By issuing shares on a blockchain ledger, 20|30 is using a cryptographic record of transactions rather than a centrally managed system. In financial markets, new SEC guidance will help Secure Token Offerings (STOs) bring liquidity to traditional markets whilst applying regulation to help protect investors from some of the risks posed by Initial Coin Offerings (ICOs). The FCA’s Sandbox 4 programme has helped to progress this.
Blockchain is still a nascent technology, but it is wrong to dismiss it. The Cudo Ventures’ business model of collaborative consumption was not possible until cryptocurrency and blockchain – it facilitates frictionless global micropayments and trust respectively. For the same reason, large companies are quietly applying blockchain as a way to automate business processes between entities. Maersk is applying blockchain to international freight, and PayPal – often viewed as at risk from blockchain – has invested in a blockchain start-up to improve identity management.”