It was reported that the TASE and the Israeli Ministry of Finance worked together to integrate blockchain technology into the traditional financial market.

TASE stated that, in addition to blockchain technology, the project team utilized revolutionary technologies such as distributed ledger technology (DLT), smart contracts, and tokenization technology to enhance the performance of the financial market. The integration of these cutting-edge technologies was intended to revolutionize capital market payment and issuance.

Tel Aviv Stock Exchange Finishes Project Eden Proof of Concept

TASE and the Israeli Ministry of Finance previously inked a partnership agreement to develop the Proof of Concept for Project Eden. During the initial phases of the development of Project Eden, it was observed that TASE and the Israeli regulatory agency utilized their extensive expertise and technologies to incorporate blockchain technology into the distribution and settlement of electronic government bonds.

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On May 31, TASE hosted a go-live event at which the most successful local and international banks participated. At the event, it was reported that, among other institutions, JPMorgan Chase, Deutsche Bank, Barclays, Paribas, and GoldmanSachs made significant contributions.

Last month, the Ministry of Finance reportedly issued the first digital bond based on the blockchain network. The digital bond shared characteristics with the ERC-1155 security token created for a particular decentralized application (dApp).

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The Ministry of Finance stated in a statement that the Proof of Concept for the digital bond was developed using Web3 and Ethereum Virtual Machine (EVM). The goal of integrating EVM technologies was to facilitate future compatibility with other blockchain networks.

Steps in the Development of Proof of Concept

Initially, project Eden was introduced as a digital token, a vital component of the payment system. Before the launch, the developers insured that the digital token would make effective use of smart contracts and adhere to the ERC-20 token standards.

After the successful introduction of the digital token, local dealers were permitted to use their digital accounts to transact with fake currency. The new token's value on the Eden platform was equivalent to one Israeli Shekel.

Initial Steps in the Development of Proof of Concept 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 effectively utilize smart contracts and adhere to the ERC-20 token rules.

However, the Eden ecosystem made use of emerging technologies to guarantee that the security token was purchased with digital assets such as central bank digital currency (CBDC). The most recent innovation from TASE supports the efforts of global central banks to incorporate CBDC into existing financial instruments.

Importance of Project Eden Proof of Concept

During the development of the settlement system, the developers incorporated Atomic settlement into the payment token to intercept security tokens. This integration strengthens traditional securities via the TASE's proprietary smart contract for bond management.

Notably, the smart contract for bond administration was incorporated to facilitate the verification and approval of digital tokens. The smart contract was observed to provide intermediary services between the issuer and the consumer.

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The primary objective of the smart contract is to increase the accuracy and consistency of the transaction. Upon reflection of the launch, it was clear that the POC Eden project utilized emerging technologies to revolutionize the financial market.

The DLT technologies seek to assist the financial sector in reducing operational costs and capitalizing on countless investment opportunities. Subsequently, tokenization technology was incorporated in order to improve the efficacy of the financial market.

Will Project Eden PoC Support Fiat Tokenization and Government Bond Tokenization?

The accountant general of the Ministry of Finance, Yali Rothenberg, disclosed in a statement that regulatory agencies had made substantial investments in employing advanced technology. Rothenberg described the advantages of integrating emergent technologies into the financial market sector.

Rothenberg stated that as the traditional financial market transitions to digital activity, emergent technologies enhance the capital market's functionality and provide the consumer with enhanced services.

Rothenberg acknowledges in his report the efforts made by TASE and the Ministry of Finance to conclude the Project Eden POC. He added that Project Eden would facilitate the issuance and clearance of digitalized securities.

Nonetheless, an exceptional aspect of Project Eden was its capacity to increase public access to the financial system.