Earlier this year, Nasdaq joined a clutch of companies seeking to adapt Blockchain for mainstream finance, stating it would leverage blockchain technology as part of an enterprise-wide initiative. Now Nasdaq reveals it is signing a partnering with the infrastructure provider Chain to use blockchain, the ledger behind the bitcoin digital currency.
The stock market operator is partnering with infrastructure provider Chain to use Blockchain to issue and transfer the shares of privately held companies. Blockchain is the ledger that drives the Bitcoin digital currency.
Chief Executive Officer Bob Greifeld sees the benefits of using the technology as immense and that the technology potential can no longer be ignored. Advocates for the software say it will dramatically speed up and simplify how trading of everything from stocks to loans and derivatives is processed. Wall Street professionals endorsed Blockchain in a recent Greenwich Associates survey, with 94% saying it could be used in finance.
With this partnership Nasdaq OMX Group Inc. aims to become the first major exchange operator to use the technology behind Bitcoin when a project in its private companies business goes live in the fourth quarter of 2015.
Nasdaq Chief Executive Officer, Bob Greifeld stressed:
“We also plan to announce further blockchain initiatives in the future. The application of Blockchain technology within Nasdaq’s private market aims to modernize, streamline and really secure cumbersome administrative functions.”
Currently, we are witnessing an armed race to the Blockchain technology; last month, Symbiont all alone raised about $1.25 million from financial industry heavyweights including former New York Stock Exchange chief Duncan Niederauer, former Citadel LLC executive Matt Andresen, and two co-founders of high-frequency trading firm Getco LLC, Dan Tierney and Stephen Schuler. Other firms investigating finance-related uses of Blockchain include Digital Asset Holdings LLC, headed by former JPMorgan Chase Co. banker Blythe Masters, and Blockstack, run by former Google Inc. and Nasdaq employees.
Without any doubt, we can surely say that 2015 was a very exciting year for the Blockchain technology.