Nasdaq, the world’s second-largest stock exchange in the world has utilized its Nasdaq Linq blockchain ledger technology to settle a private securities transaction of established blockchain software developer and infrastructure provider Chain.com.
We believe this successful transaction marks a major advance in the global financial sector and represents a seminal moment in the application of blockchain technology,” announced Nasdaq CEO Bob Greifeld..
“Through this initial application of blockchain technology, we begin a process that could revolutionize the core of capital markets infrastructure systems. The implications for settlement and outdated administrative functions are profound.”
According to Nasdaq, the Proof of Concept and blockchain network used by Chain.com significantly reduced settlement time and costs for paper stock certificates. Because of the greater level of transparency of the blockchain technology, investors and issuers are enabled to track and view official documents online, with ease.
The process of the transaction and asset settlement implemented by Nasdaq’s Linq technology is completely automated, eliminating the need for third party applications and mediators to interfere with the network’s transactions.
“No doubt this is a powerful milestone for Chain and our partnership with Nasdaq,” said Adam Ludwin , CEO, Chain.com. “We couldn’t be happier with the results of the transaction. It was seamless and met our objective of drastically reduced manual ownership transfer.”
Nasdaq plan to test the technology for proxy voting in Estonia later this year and are working to develop an enterprise-wide blockchain-based applications for banks, financial institutions and government agencies.
Although Nasdaq claims to be the “first-ever” organization to issue private securities documented with the blockchain technology, former JPMorgan Executive Blythe Masters’ blockchain startup Digital Asset Holdings issued convertible notes using its blockchain-based software to help online and mobile gaming application secure investment from venture capital firms and angel investors.“Digital Asset is proud to have provided the technology to permit Pivit […]
