Nasdaq Picks Chain for its Blockchain ‘Private Market’

Nasdaq has named blockchain API developer Chain as the first company that will be trialing a blockchain backed version of the group’s Private Market for trading pre-IPO company’s shares.

Nasdaq embraces blockchain tech

In an announcement on June 24, Nasdaq OMX Group explained that Chain would be the first company on the Private Market to be issuing, cataloging, and managing transactions of their privately issued shares through blockchain technology. 

The problem the companies are trying to solve is the difficult bookkeeping and paperwork currently associated with issuing shares in a private company. The paper records used are frequently outdated as startups make changes to staff and pivot their businesses faster than what the traditional capitalization recording methods can keep up with.

CEO of Nasdaq Bob Greifeld explained the importance of simplifying the current method of share issuing and cataloging. In a press release, he said:

“We are excited about the potential impact of this new endeavor with Chain on the transaction process. This Nasdaq Private Market project aims to simplify the overwhelming challenges private companies face with manual ledger record-keeping. As blockchain technology continues to redefine not only how the exchange sector operates, but

Read more ... source: Cointelegraph