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

139

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  The implications for settlement and outdated administrative functions are profound.”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

About Richard Kastelein

Founder, Publisher and Editor in Chief of industry leading online publication, Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC. Kastelein is also an advisor with a number Blockchain startups doing ICOs including Humaniq.co where hs is interim CMO, DECENT.ch, Inchain, Chronobank, eGaas and others. He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List.

As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven, Bucharest, Nairobi, Tel Aviv, Manchester, Brussels, Barcelona etc, where he helped spread the cause for Blockchain technology and cryptocurrency and, consequently, has built a notable network in the scene.

He’s also a director of a Dutch foundation called The Hackitarians and has run innovation events in London, San Francisco, Berlin, Amsterdam and other cities around the world on topics such Blockchain, Health, Energy, Internet of Things, AI etc.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

Visit Website
View All Articles
Buy Bitcoin at CEX.IO

Get Blockchain News Where You Are!

Join our Linked in GroupLike our Facebook Page
Linkedin Group BlockchainLinkedin Facebook Group