Israel's Government and Tel Aviv Stock Exchange Preparing to Issue Digital State Bond

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Israel's Government and Tel Aviv Stock Exchange Preparing to Issue Digital State Bond
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Israel's Ministry of Finance and the Tel Aviv Stock Exchange are preparing to issue a blockchain-based digital state bond. By JamieCrawleyCD

Israel's Ministry of Finance and the Tel Aviv Stock Exchange are preparing to issue a blockchain-based digital state bond.

The Israeli government and TASE are partnering with digital asset infrastructure firms Fireblocks and VMWare to perform live testing of a new platform using smart contracts and tokenization for the trading and clearing of digital bonds. The live test will see units of the digital bond issued to e-wallets of the acquiring participants, paid for in digital currency which will be transferred to the Israeli government's e-wallet.

The government and TASE's aim is to streamline processes, reduce costs and shorten the duration of issuance 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," they said Wednesday.

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