Nasdaq OMX Group Inc. announced Wednesday a partnership with blockchain infrastructure provider Chain to make digital ledger technology available to private firms that issue and transfer shares on the Nasdaq Private Market (NPM), reported Reuters.
“Having an immutable record from the inception of a company through the various financings and exits, that is shared and open, is going to create a better corporate governance model,” said Chain CEO Adam Ludwin in an interview with Reuters.
The news agency reported that Nasdaq debuted its market for private businesses in 2014 after the passing of the Jumpstart Our Business Startups in 2012, which increased the amount of shareholders an unlisted company can have from 500 to 2,000. The market was developed to make it easier for investors of private firms to exit, including helping staff members with a large portion of their compensation linked to shares to sell them when needed.
Chain will be the first company signed onto NPM to use blockchain technology to