The Tel Aviv Stock Exchange (TASE) has partnered with Blockchain Technology Partners (BTP) to put the finishing touches on its Distributed Ledger Technology (DLT) Securities Lending Project ahead of the platform’s later launch This year.
According to TASE, Blockchain Securities Lending (BSL) aims to address the fragmented, inefficient and opaque nature of the securities lending market in Israel.
BSL will allow direct lending between all major financial players and will provide a one-stop-shop for all securities lending activities, according to the exchange. It aims to facilitate access to larger volumes of securities within shorter timeframes and to operate in shorter-term positions.
Uri Shavit, chief information officer for TASE, said BSL will provide a distributed service available to all participants in the Israeli market in order to increase market volumes and make securities lending available to more players.
The DLT platform is built in collaboration with Accenture, Intel and the global fintech innovation center The Floor, and had been in development since early 2017.
BSL is built on Hyperledger Sawtooth, an open source enterprise blockchain network. It uses Intel Software Guard Extensions technology to maintain data privacy, which aims to ensure that the details of an individual transaction are visible only to its participants.
BTP was introduced to TASE by Intel and has now been incorporated into the project to “ensure production readiness” of the platform and provide ongoing support after launch.
As part of its contribution, BTP will offer access to its Sextant management platform.
Sextant is comprised of production-grade Sawtooth distribution technology and other tools to deploy and manage that distribution on Kubernetes in production, BTP explains.
Duncan Johnston-Watt, CEO of BTP, explains that since joining the project, his company has been working with TASE on acceptance testing for the past few months.
“As a result of this collaboration, BSL and our distribution of Sawtooth have been significantly improved, with changes to Sawtooth being made upstream,” he says.
Once acceptance testing is complete, BTP and TASE are able to “move forward with a comprehensive production readiness program that covers governance, operations, security, support and testing. user acceptance for the launch of the BSL platform later this year ”.
What is Hyperledger Sawtooth and why is it important?
TASE’s choice of Sawtooth sets it apart from other DLT exchange projects, including Deutsche Boerse’s partnership with HQLAᵡ, which is powered by Corda technology from R3, and The BME Spanish exchange offer based on Hyperledger Fabric.
Hyperledger Sawtooth is an open source enterprise blockchain network that is hosted as part of the “Greenhouse Hyperledger”, but which is markedly different from more well-known open source projects such as Fabric and Indy.
Johnston-Watt told SLT that in addition to being open source, industry independent, and governed by the Hyperledger Foundation, the key point in favor of Hyperledger Sawtooth is its pluggable consensus mechanism.
It is also scalable and has a highly modular architecture that offers a clear separation between the network and the application levels, he adds.
Additionally, according to Johnston-Watt, Hyperledger Sawtooth offers “first-class support” for smart contracts, which is exemplified by its support for open source DAML smart contract technology from Digital Assets, which has been integrated with Sawtooth. in May 2019.