Blockstack, a San Francisco-based firm, is adapting the technology of Bitcoin for mainstream finance, including clearing and settlement. A small group of banks have started beta testing Blockstack’s technology, Bloomberg Business reports.
The startup, run by former Google Inc. and Nasdaq OMX Group Inc. employees, is jumping into the competition to use digital-currency technology to tackle financial companies’ slow, antiquated back-office operations.
“We’re not trying to destroy banking or financial services as they are today,” said Peter Shiau, Blockstack’s co-founder and chief operating officer, who previously worked at Standard Chartered Bank in product innovation. “We see what we’re building as technology that can help improve the back-office infrastructure that financial institutions are using.”
Blockstack’s team also includes Philip Harris, a former Nasdaq executive, as an adviser, and chief executive officer and founder Miron Cuperman, who used to work as a senior security engineer at Google.
According to the company’s website, Blockstack is a licensable software package to enable financial institutions and other enterprises to build sophisticated blockchain 2.0 applications on their own private blockchain.
Blockstack.io is a hosted version of Blockstack to allow anyone to start building applications on