Borsa Istanbul, Turkey’s state-backed stock exchange, has announced the development of a blockchain platform that will store details of new customers and share documents on a decentralized network.
In an announcement on Wednesday, the bourse operator said the blockchain platform was developed in-house to accommodate Know Your Customer (KYC) norms, registering new customers and the sharing of information and documents securely in a ‘fast, reliable and transparent platform’.
Notably, the blockchain platform has already enabled a number of entities including the national depositry, the clearing and settlement authority as well as Borsa Istanbul to share and sync their customer databases.
In translated statements reported by local newswire Anadolu, the bourse said:
With the blockchain-based project, which was prepared by Borsa Istanbul IT team, information in the customer database of Borsa Istanbul, Istanbul Clearing, Settlement and Custody Bank (Takasbank), and the Central Securities Depository of Turkey’s (MKK) has been synchronized.
Further, document management and the editing of customer information will also be facilitated on the blockchain network. “In this way, possible mistakes in the information input into the database will be avoided,” the statement read.
Borsa Istanbul adds that the platform is technically adept and capable to “perform a high number of operations and can be used in other projects”, explaining its security framework borrows from the robust safeguards enabled by blockchain technology.
The endeavor joins a growing industry wherein some of the world’s biggest stock exchanges have increasingly turned to blockchain technology for a number of applications. Despite a short delay, the Australian Securities Exchange (ASX) will become the first major stock exchange in the world to completely integrate blockchain as the core technology for post-trade processes.
Last month, the Singapore Exchange confirmed a joint-project with the country’s central bank to transact and settle securities in digitized tokens over a blockchain. The Hong Kong Stock Exchange, the world’s sixth-largest exchange operator, is also turning to the transformative technology for cutting costs.
On Monday, German stock exchange Deutsche Börse revealed its foray into the space by launching a dedicated cryptocurrency and blockchain department.
Featured image from Shutterstock.
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