The Canadian Securities Exchange (CSE) is looking to launch a blockchain-powered trading platform.
The plan, which still needs to be approved by the Canadian regulators, is to build a clearing house based on blockchain technology. The clearing house will allow companies to issue equity and debt via digital tokens while still operating under a regulatory framework. (Many of the concerns circulating around cryptocurrency are that the digital tokens aren’t regulated, so this offers a regulatory solution to those concerns.)
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The blockchain equipped platform would be a place for companies to clear, trade, and settle securities trades. Securities would be offered to investors through a Security Token Offering. All securities trades would be able to be confirmed in real-time, as opposed to the regular two business days. This will help to reduce errors and speed up the entire process.
This will be a big move for the CSE if the platform gets approved. Chief Executive Officer of the CSE, Richard Carleton, stated that “The Canadian Securities Exchange expects to be the first recognized exchange in Canada to introduce a fully developed Blockchain platform for trading, clearing and settling tokenized securities.”
This will revolutionize corporate finance, and will also help the CSE to maintain a greater foothold over the monopoly that is currently held by the TMX Group Ltd. (TSX:X) (OTC:TMXXF). TMX Group owns the Canadian Depository for Securities Ltd., which operates the Toronto Stock Exchange and the TSX Venture.
Already, the CSE offers an alternative marketplace in Canada that has become popular with both cannabis companies and blockchain companies. If the CSE’s proposed blockchain-powered trading platform is approved, perhaps it will become the go-to marketplace for any blockchain companies that are emerging in this growing industry. The platform may even encourage more companies to see the value in blockchain.
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