Key Insights
- Tel Aviv Stock Exchange collaborates with Fireblocks to enter the digital asset market.
- Initiative aims to develop blockchain solutions, tokenize assets, and create new markets.
- Israel explores asset tokenization following successful trial with digital government bonds.
Israel is set to grant prominent investors entry to the digital asset market via its stock exchange, an initiative disclosed by the Tel Aviv Stock Exchange in a recent press release. The development of blockchain solutions for this endeavor will be overseen by the local company Fireblocks, as stated in the announcement.
Representatives of the stock exchange acknowledged that the digital asset industry has recently encountered difficulties due to “the immaturity of some decisions or the lack of relevant knowledge and experience.” But now, according to the stock exchange, it is becoming increasingly clear that the fusion of innovative solutions, traditional finance and a regulated system “is of inestimable value.”
What kind of products the parties will be engaged in is not specified. The press release does not say if it is about cryptocurrencies. Instead, the exchange says it will first work with Fireblocks to tokenize assets as well as create new markets.
Israel explores asset tokenization following successful trial
Israel’s curiosity in asset tokenization dates back to 2022 when the Israeli Ministry of Finance, in collaboration with Fireblocks, initiated a trial for trading digital government bonds, according to reports at that time.
Yali Rotenberg, Accountant General of the Israeli Ministry of Finance, then noted that blockchain-based technologies would eventually penetrate the foundation of financial markets, “fundamentally and profoundly changing them.” The Tel Aviv Stock Exchange also took part in the experiment.
Eyeing in Israel and the digital state currency. In April 2023, the Bank of Israel Steering Committee on the possible issuance of the digital shekel revealed several scenarios for the launch of a digital currency called SHAKED.
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According to the statement of the regulator, the launch of the digital national currency may take place with increased activity in the use of the stablecoin.
According to the Central Bank, the introduction of stablecoins can “worsen the payment system”, and the lack of a peg to the shekel can also damage the transfer system.