Tel Aviv Stock Exchange Completes Project Eden Proof of Concept for Tokenizing Fiat and Bond
An advanced announcement from Tel Aviv Stock Exchange (TASE) reveals that the new proof of concept (PoC) phase has successfully been completed. It was reported that the TASE collaborated with the Israeli Ministry of Finance to integrate blockchain technology into the traditional financial market.
Apart from blockchain technology, TASE stated that the project team utilized revolutionary technologies such as distributed ledger technology (DLT), smart contracts, and tokenization technology to improve the financial market’s performance. The integration of these cutting-edge technologies aimed to transform the payment and issuance of capital markets.
Tel Aviv Stock Exchange Completes Project Eden PoC
Earlier, TASE and the Israeli Ministry of Finance signed a partnership agreement to develop the PoC of Project Eden. During the preliminary development of Project Eden, it was noted that TASE and the Israeli regulatory agency leveraged their extensive expertise and technologies to integrate blockchain technology in the distribution and settlement of electronic government bonds.
On May 31, TASE hosted a go-live event attended by the best-performing local and international banks. At the event, it was reported that JP Morgan Chase, Deutsche Bank, Barclays, Paribas, and Goldman Sachs, among other banks, made their meaningful contribution.
Reportedly, the Ministry of Finance released the first digital bond centered on the blockchain network at last month’s event. The digital bond had similar features to the ERC- 1155 security token developed on a specific decentralized application (dApp).
In a statement, the Ministry of Finance asserted that the developers of the digital bond leveraged Web3 technologies along with Ethereum Virtual Machine (EVM) to develop the PoC. The idea behind the integration of EVM technologies aimed at easing compatibility with other blockchain networks in the future.
Steps Involved in the Development of PoC
Initially, project Eden was launched as a digital token, a crucial element in the payment process. Before the launch, the developers ensured the digital token would utilize smart contracts effectively and observe the ERC-20 token rules.
After the successful launch of the digital token, the local dealers were allowed to transact their dummy money through their respective digital accounts. Within the Eden platform, the new token value was equivalent to one Israeli Shekel.
Nonetheless, the Eden ecosystem utilized emerging technologies to ensure that the payment of the security token was made using digital assets such as the central bank digital currency (CBDC). TASE’s latest development supports the efforts made by global central banks to launch CBDC in the existing financial tools.
Importance of Project Eden PoC
During the development of the settlement system, the developers integrated Atomic settlement to intercept security tokens to the payment token. This integration strengthens traditional securities through the TASE proprietary bond management smart contract.
Notably, the bond management smart contract was integrated to support the verification and approval of the digital tokens. It was observed that the smart contract provided intermediary services to the issuer and the customer.
Primarily the smart contract aims to improve the transaction’s accuracy and consistency. Reflecting on the go-live event, it was evident that the POC Eden project utilized emerging technologies to revolutionize the financial market.
The DLT technologies aim to support the financial sector to reduce operational costs and tap the endless opportunities for investors. Subsequently, the tokenization technology was integrated to enhance the efficiency of the financial market.
Will Project Eden PoC Support Tokenization of Fiat and Government Bond?
A statement issued by the accountant general at the Ministry of Finance, Yali Rothenberg, revealed that regulatory agencies had invested heavily in adopting advanced technology. Rothenberg outlined the benefit of implementing emerging technologies in the financial market sector.
As the traditional financial market evolves to digital activity, Rothenberg mentioned that emerging technologies help improve the capital market’s functionality and provide the user with improved services.
In his report, Rothenberg acknowledges the efforts made by TASE and the Ministry of Finance to complete the POC of Project Eden. He added that Project Eden would streamline the digitized securities issuance and clearance.
Nonetheless, an exceptional feature of Project Eden was the ability to improve the accessibility of the financial system to the public.
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