Leading U.K. Institutions Successfully Trial Blockchain Technology

Leading U.K. Institutions Successfully Trial Blockchain Technology

Recent, independent trials with two high profile British institutions have been declared a success, illustrating the inroads being made by blockchain tech within the established economy.

The London Stock Exchange (LSE) has successfully undertaken the issuance of £3 million worth of shares for technology company 20|30 in tokenised form under the guidance of their Turquoise test division whilst the Government’s HM Land Registry (HMLR) registered the sale of a residential property, demonstrating a digital transfer of ownership under a project named Digital Street.

20|30 and 2030 Implications

The company 20|30 was perhaps a logical choice for leading the way in tokenising equity and securities on the LSE as they have been a participant in the Financial Conduct Authority’s (FCA) regulatory sandbox. The majority of its team are also associated with the Pillar project which has shown an innovative approach to various aspects of business and even life methodology.

The 20|30 share tokenisation connected a regulated trading venue, the Turquoise platform to a public blockchain infrastructure in a manner that is compliant with U.K. laws and regulations.

By using blockchain, costs are reduced for any company coming to market on the LSE as clearing houses are no longer needed to process transactions and 20|30 will aim to commercialise its own technology for others charging around 1% for initial public offerings (IPO) instead of the usual 7% fee charged by traditional exchanges.

As the 20|30 tokenised sale has potential ramifications for the U.K. corporate world and beyond, HMLR’s foray into blockchain has similar connotations for the general public.

Involving various stakeholders including R3, Shieldpay and Yoti, the registration of an unassuming semi-detached house in Gillingham, Kent through Digital Street showcased how the speed and transparency of HMLR’s blockchain platform was an improvement upon existing procedures.

While admitting this use-case was a small step in development, a HMLR spokesman told LegalFutures that they were implementing due diligence and suggested a timeframe of 2030 before a full picture of an enhanced conveyancing industry could be established.

Other powerful U.K. financial entities such as the Bank of England have previously stated the need to adapt to the “fourth industrial revolution”, so they can interface with private business and platforms using blockchain technology, and have actively embarked on proof-of-concept prototypes with various interested parties including Ripple.