The Tel Aviv Stock Exchange (TASE: TASE) and the Israeli Ministry of Finance have successfully completed the Proof of Concept (PoC) phase for Project Eden. This collaboration showcases the potential of innovative technologies such as blockchain, smart contracts, and tokenization in improving efficiency and transparency in financial markets.
Project Eden is a unique project led by TASE in partnership with the Israeli Ministry of Finance. The project explores the application of blockchain infrastructure in the issuance and settlement of digital government bonds.
During the go-live event, the Ministry of Finance issued and minted the first dummy digital government bond on a blockchain-based platform. The blockchain used for this PoC was EVM-compatible, enabling potential integration with other blockchain solutions in the future.
Project Eden also introduced a digital Payment Token as a fundamental component of the settlement process. Utilizing smart contracts and the ERC-20 token standard, the Payment Token represented one Israeli Shekel within the Eden ecosystem.
The settlement process was done through ‘Atomic Settlement’ between the Security Tokens and Payment Tokens, transforming the traditional securities settlement process. The TASE Bond Management smart contract acted as an intermediary, ensuring the accurate transfer of tokens.
The go-live event demonstrated the successful implementation of advanced technologies, showcasing their ability to transform financial markets. By leveraging blockchain and tokenization, financial institutions can enhance efficiency, reduce operational risks, and create new opportunities for investors.
This project positions TASE and the Ministry of Finance at the forefront of technological advancements in capital markets. It lays a strong foundation for future innovations in the financial industry.