The Israeli Ministry of Finance’s Office of the Accountant General collaborates with the Tel Aviv Stock Exchange (TASE) to test a blockchain-based platform for digital bond trading.
According to local media reports, the project will be backed by Israeli multi-cloud service provider VMware and blockchain infrastructure startup Fireblocks.
The new initiative, dubbed “Eden,” aims to lower expenses and streamline the process of issuing national bonds.
The test will examine how blockchain technology might improve transparency, speed up the issuance and clearing of state bonds, etc, while lowering risks.
“The current project kicks off the journey into this new world, allowing a first and important foothold that will serve as the foundation for the upgrading of other traditional mechanisms down the road,” TASE stated.
The project platform will deliver a new series of tokenized government bonds to the participating banks’ e-wallets during the live test, moving the funds held in virtual currencies to the Israeli government’s e-wallet.
The particular digital currencies that will be utilized in the live test are not disclosed. By the end of Q1 2023, the pilot project is anticipated to be finished.
TASE and the Ministry of Finance claimed to have been monitoring the financial markets’ recent changes in relation to distributed ledger technology, and the tokenization of various asset classes.
They were also analyzing the various trials carried out by financial institutions and central banks around the world with regard to the issuance of Central Bank Digital Currency, or CBDC.
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