Nasdaq has partnered with San Francisco-based bitcoin API startup Chain to implement the Bitcoin blockchain technology in its newly launched marketplace, Nasdaq Private Market.
Previously reported by Bitcoin Magazine, Nasdaq announced its plans to implement Bitcoin’s blokchain technology into its pilot test, where shares of private companies are handled and traded as smart assets on the blockchain.
Unlike other decentralized asset trading platforms, Nasdaq plans to utilize the colored coin protocol Open Assets based on the Bitcoin blockchain instead of developing an alternative blockchain or digital currency.
“I am a big believer in the ability of blockchain technology to effect fundamental change in the infrastructure of the financial services industry,” said Bob Greifeld, CEO of Nasdaq. “Clearinghouses are a wonderful invention, but if you have a public ledger that is trusted, you can evolve back to a bilateral (trading) world but proceed with instantaneous settlement. We currently settle at T+3 [within 3 days]. Why not settle in 5-10 minutes?”
Chain Bitcoin API
Bitcoin API startup Chain is set to provide Nasdaq with the infrastructure and simplified API for the Bitcoin blockchain. Its easy interface to transactions on the Bitcoin blockchain will simplify the process of trading shares and assets in