In this way, the country’s government plans to improve the financial system and reduce costs

Israeli authorities will test blockchain-based bonds

19.10.2022 - 12:00

112

2 min

What’s new? The Israeli Ministry of Finance and the Tel Aviv Stock Exchange (TASE) plan to test blockchain-based digital bonds. According to Blockworks, this initiative aims to modernize financial processes and reduce associated costs. TASE explained that tokenized bonds will be stored in investors’ digital wallets. A pilot launch is scheduled in the coming days and is expected to be completed by the end of Q1 2023.

Material by Blockworks

What else is known about the initiative? Digital assets infrastructure and custody solutions provider Fireblocks and US cloud computing tech firm VMWare are involved in the project.

The platform, which is based on smart contracts and tokenization, will also be designed for the clearing and trading of digital assets other than cryptocurrencies, according to a TASE spokesperson.

“The financial markets are undergoing drastic transformations in recent years. We hope to see Israel spearhead financial technology while being the first to implement cutting-edge technologies and upgrade the capital market,” noted TASE CEO Ittai Ben-Zeev.

In March, Israel’s second-largest bank, Bank Leumi, launched a service for BTC and ETH trading and storage. The initiative was implemented by the bank’s digital arm, Pepper Invest, and Paxos blockchain platform.

Also in August, the Israeli authorities approved a law that prohibits payments of large sums in cash and bank checks. Transactions exceeding 6000 Israeli shekels (~$1698) must be paid by digital transfer or debit card. According to the Israel Tax Authority, this is needed to combat illegal activity and encourage digital payments.

Author:

Vasiliy Smirnov Vasiliy Smirnov

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