London’s Blockchain Bet

Brexit isn't slowing down blockchain.

Could blockchain be on the verge of “tokenizing” securities issuance? The London Stock Exchange Group—which owns the Borsa Italiana, the FTSE Russell indexes and other information and securities services providers—moves to join the automation revolution in February.

Nivaura provides platforms to automate the issuance of financial instruments. These include blockchains that register and settle primary securities issues without human involvement.

A third round of fundraising for two-year, London-based Nivaura reaped £15 million ($19.8 million), with LSEG paying an undisclosed sum for a minority stake. Allen & Overy, Linklaters, Santander InnoVentures and Transamerica Ventures were among the other partners.

The goal, says Nikhil Rathi, LSEG’s head of international development, is to leverage Nivaura’s technology to boost efficiency and develop new products. Nivaura claims it slashes the time from issuance to market by up to 80% by tokenizing debt and equity. Institutions remain cautious about cryptocurrencies, but the Financial Conduct Authority’s upcoming guidelines for cryptocurrencies in the UK could ease concerns this summer.