Borsa Italiana, part of London Stock Exchange Group (LSEG) and IBM are building a blockchain solution to digitize the issuance of securities for small and medium enterprises (SMEs) in Europe. Designed to simplify the tracking and management of shareholding information, the new system intends to create a distributed shared registry containing a record of all shareholder transactions, helping to open up new opportunities for trading and investing. The blockchain solution for unlisted SMEs in Europe is designed to replace the paper trading certificates that are commonly issued to private companies today. With a more digitized, streamlined, and transparent process enabled by the blockchain solution, various parties – including issuers, regulators, and investors – will have increased insight into company information.
By implementing the blockchain solution, Borsa Italiana is taking the lead in transforming how private companies can exchange and bring transparency around shareholder data and expand credit access.
The solution is undergoing an initial test phase with a small group of partners and clients.