ATHEX Teams Up with Sui Blockchain Ecosystem to Revolutionize Traditional Finance
Summary:
The Athens Stock Exchange (ATHEX) collaborates with the Sui blockchain ecosystem to pioneer in the financial realm through blockchain integration. Traditional issuance processes are simplified with blockchain technology which provides an advanced layer of security in a public, immutable ledger. ATHEX also plans to introduce a revolutionary tool known as Electronic Book Building (EBB), allowing companies to list transferable securities. Other global exchanges like London Stock Exchange (LSE) are also embracing Web3 technology, signaling a broader trend in traditional finance.
Featuring an innovative integration of blockchain technology, the Athens Stock Exchange (ATHEX) is set to radically transform the global financial landscape. This unique move, reported by ATHEX in collaboration with the Sui blockchain ecosystem in early March, focuses on minting securities as digital certificates for improved security, transparency, and effectiveness. Traditionally, separate confirmations define the main issuance process for securities allocation and settlement. But the integration of blockchain technology streamlines these processes into one smooth confirmation, ensuring quicker and smarter transactions for all the stakeholders — namely the exchange, its members, investors, and issuers raising capital. During a conversation with Cointelegraph, a member from Sui delved deeper into this collaboration with ATHEX and the role of blockchain technology in enhancing operations within a traditional financial setup.
Blockchain integration is primarily driven by the high security it can provide in highly sensitive networks, like a stock exchange handling billions of dollars every day. Digital certificates, a standard feature of blockchain transactions, provide an additional layer of security, coupled with a public, unchangeable ledger. This helps prevent possible manipulation, a frequent issue within conventional finance. The transparency brought in by blockchain technology also aids in regulatory oversight, enabling regulators to easily track trade activities. According to a spokesperson from Sui, centralized issuance processes have been exploited by malicious players over the years, and non-transparent allocation has been a sore point.
ATHEX is all set to launch a breakthrough tool known as the Electronic Book Building (EBB), designed to be a future fundraising tool, permitting early-stage and mature firms to list transferable securities. According to Sui's representative, ATHEX’s EBB positions it at “the forefront of innovation… compared to exchanges worldwide." The key objective is to boost innovation using blockchain technology while bolstering security, transparency and maintaining compliance. It's crucial to ensure optimized speed, security, and fee structures when executing a blockchain-based traditional financial market project at a larger scale. The spokesperson advises that ATHEX’s standard partnership with Sui sets it apart from the competition by endorsing Web3 tools.
While ATHEX paves the way with its EBB tool, other stock exchanges worldwide have begun to explore the Web3 space. The London Stock Exchange (LSE) announced on March 11th its openness to consider applications per its Crypto ETN Admission Factsheet's criteria for Bitcoin and Ether cryptocurrency exchange-traded notes (ETNs) by the second quarter of 2024. Considering the exchange’s openness and Web3-friendly approach, this could indicate a broader trend in traditional finance.
Published At
4/8/2024 3:40:22 PM
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