Israel's Tel Aviv Stock Exchange To Issue Digital State Bond

The Tel Aviv Stock Exchange and the Office of the Accountant General of the Israeli Ministry of Finance are working together to test a blockchain-based platform for trading digital bonds.

The initiative will be backed by Israeli blockchain infrastructure firm Fireblocks and multicloud service provider VMware, Inc. VMW, according to local media sources.

The new initiative, dubbed "Eden," intends to reduce costs and simplify the national bond issuance procedure.

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Initiative aimed at increasing transparency

The experiment will look at how blockchain technology may reduce risks while enhancing transparency and speeding up the issue and clearing of state bonds.

“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,” according to the TASE.

During the live test, the project platform will transfer funds stored in virtual currencies to the Israeli government's e-wallet by delivering a fresh series of tokenized government bonds to the participating banks' e-wallets.

It is not yet known specifically which digital currencies will be used in the live test.

The pilot project is projected to be completed by the end of the first quarter of 2023.

According to TASE and the Ministry of Finance, they have been keeping a tab on the recent developments in the financial markets related to distributed ledger technology and the tokenization of various asset classes.

Additionally, they were reviewing the numerous Central Bank Digital Currency, or CBDC, issuance experiments conducted by financial institutions and central banks throughout the globe.

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