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

134

Get Blockchain News Where You Are!

Join our Linked in Group Like our Facebook Page
Linkedin Group Blockchain Linkedin Facebook Group

Share with:


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  The implications for settlement and outdated administrative functions are profound.”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.

Get Blockchain News Where You Are!

Join our Linked in Group Like our Facebook Page
Linkedin Group Blockchain Linkedin Facebook Group
SHARE
Previous articleEuromoney Financial Industry Survey: Majority Recognise Blockchain Transformational Capability
Next article$100,000 up for grabs in Shanghai Blockchain Hackathon
Founder of Blockchain News and The Hackitarians Foundation, Richard Kastelein is an award winning publisher and editor, hackathon organiser and entrepreneur. He has written over 700 articles at Blockchain News, has a massive network in the Blockchain arena and is available as a speaker and consultant. (richard@the-blockchain.com) Kastelein has spoken (keynotes & panels) on technology at events in Amsterdam, Barcelona, Belfast, Berlin, Brussels, Brighton, Copenhagen, Cannes, Cologne, Curacao, Frankfurt, Gdansk, Hollywood, Hilversum, Geneva, Groningen, London, Las Vegas, Leipzig, Madrid, Melbourne, NYC, Oxford, Rio de Janeiro, Sheffield, San Francisco, San Jose, Sydney, Tallinn, Vienna, and Zurich. A Creative Technologist & Canadian (Dutch/Irish/English/Métis) his career began in the Native Press (Canadian Arctic) and he later spent a decade in the Caribbean media. Currently, he writes occasionally for Wired Insights, Guardian & Virgin and his articles have been translated into Dutch, Greek, Polish, German & French.