The Tel Aviv Stock Exchange (TASE) revealed on Oct. 24 the creation of a blockchain-based platform to expand its trading services to cryptocurrencies and other digital assets as part of the new strategic plan for the years 2023 to 2027.
The exchange stated about its foray into cryptocurrencies and the creation of a digital asset platform:
“TASE will promote the implementation of innovative technologies, including DLT, tokenization of various digital asset classes, and smart contracts. TASE intends to examine multiple potential action plans, including conversion of existing infrastructure to innovative technologies, deployment of technologies innovations in specialized platforms, the offer of a basket of services and products for digital assets and more”.
In addition, the five-year plan will include developing and selling technology solutions and services to other exchanges and market participants, expanding its market reach, and transitioning to a private company model through the creation of a new publicly traded holding company with 100% ownership of the stock.
Its subsidiaries will act as units of the new holding company. “The new structure will consist of a holding company with several subsidiaries (both existing ones and those that will be created to promote the objectives of the plan)”, said TASE, which went public in 2019.
Within the new strategic plan, TASE management has set a five-year revenue target of 10% to 12% CAGR from organic growth. The remodeling of TASE’s ownership structure may also include the “implementation of a plan for purchases and/or strategic investments in its areas of activity and/or in areas that offer added value to its activity”, stated the company, referring to a possible acquisition plan for foreign and small exchanges.
The plan, which TASE said was based on an analysis of industry trends, came days after the company announced a partnership with the Israeli Ministry of Finance to test a blockchain-backed platform for trading digital bonds. Under the name of Eden, the bonds will be issued by the Ministry of Finance, and the project aims to reduce costs and speed up the issuance of national bonds.
TASE announced in September its partnership with the Bank for International Settlements (BIS), along with other central banks, to explore the use of central bank digital currencies (CBDCs) for international retail and remittance payments. The collaboration, dubbed Project Icebreaker, will test the key features and technological feasibility of interconnecting national CBDCs using proof-of-concept systems.
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