First-Ever: Nasdaq Linq Enables Private Securities Issuance Documented With Blockchain Technology

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Nasdaq just announced announced that an issuer was able to use its new Nasdaq Linq Blockchain ledger technology to successfully complete and record a private securities transaction – the first of its kind using Blockchain technology.  Chain.com, an inaugural Nasdaq Linq client and Blockchain developer located in Estonia, documented its issuance of shares to a private investor using Nasdaq’s Blockchain-enabled technology. This transaction represents a major advance in the application of blockchain technology for private companies.

For this transaction, Nasdaq enabled the issuer to digitally represent a record of ownership using Nasdaq Linq, while significantly reducing settlement time and eliminating the need for paper stock certificates.  In addition to its equity management function, Nasdaq Linq also provides issuers and investors an ability to complete and execute subscription documents online.

Nasdaq’s use of Blockchain technology also holds promise for expediting trade settlement for transactions in public markets.  Blockchain technology has the potential to assist in expediting trade clearing and settlement from the current equity market standards of three days to as little as ten minutes. As a result, settlement risk exposure can be reduced by over 99 percent, dramatically lowering capital costs and systemic risk. In addition, this technology could allow issuers to significantly lower the risk and the administrative burden of what is largely a manual and multi-step process today.

“We believe this successful transaction marks a major advance in the global financial sector and represents a seminal moment in the application of blockchain technology,” said Bob Greifeld, CEO, Nasdaq. “Through this initial application of Blockchain technology, we begin a process that could revolutionize the core of capital markets infrastructure systems.  The implications for settlement and outdated administrative functions are profound.”

“No doubt this is a powerful milestone for Chain and our partnership with Nasdaq,” said Adam Ludwin, CEO, Chain.com. “We couldn’t be happier with the results of the transaction. It was seamless and met our objective of drastically reduced manual ownership transfer.”

In November, Nasdaq announced that it is exploring the application of its blockchain technology to proxy voting in Estonia.  Further progress with Nasdaq’s enterprise-wide Blockchain initiatives is expected to be announced in 2016.

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) - Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, "The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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