The upcoming merger deal between the London Stock Exchange and Deutsche Börse has prompted Euronext to strengthen its market infrastructure.
The pan-European stock exchange has reportedly appointed two financial advisors to sketch three futuristic strategies. One of the proposed strategies mentioned in the plan is investment into blockchain, a record keeping and settlement technology famously known for powering the decentralized digital currency Bitcoin. It has seen a wide adoption by some of the leading financial houses, including NYSE, Nasdaq, Barclays, UBS, and many others.
While Euronext is to be seen as a latecomer to join the ever-growing blockchain bandwagon, the technology could seriously strengthen the exchange’s position in the European stock sector. Its ability to settle transactions quicker than any other traditional method improves end-to-end efficiencies. Amusingly, London Stock Exchange is also an active player in the blockchain market, for it is already working with CME Group and Société Générale to create quick trade-settlement service.
As reported by Les Echos, a French daily, Euronext believes its size would be too small to compete in an ever-fluctuating equity market, unlike its competitors that would take advantage of market stable derivatives. The exchange would therefore be also looking to integrate other small exchanges in Europe to proclaim a considerable share in stock market.
Overall, the proposal marks yet another reason to celebrate for Bitcoin, whose technology is proving its mettle throughout the finance sector. It is yet not clear whether it would benefit Bitcoin as a digital currency, but it is yet a silver lining for a once-neglected financial disruption.