The process of handling transactions and shares of private companies has cost stock exchanges millions of dollars over the last few decades. Now, Nasdaq is looking to capitalise on the latest technology by incorporating Bitcoin’s blockchain technology, according to a recent article by Joseph Young for Bitcoin Magazine.
CEO of Nasdaq Bob Greifeld stated, “I am a big believer in the ability of blockchain technology to effect fundamental change in the infrastructure of the financial services industry.” This belief will see the adoption of blockchain technology in the newly launched marketplace for trading in shares of privately held companies, Nasdaq Private Market.
The move will reduce the settlement time of transactions from T+3 (within 3 days) to a matter of minutes. This is thanks to integration with bitcoin API startup Chain. The San Francisco-based company will be providing the infrastructure and simplified API that will allow Nasdaq to leverage the blockchain in this unique move.
Chain’s interface to blockchain transactions will simplify the process of trading shares and assets as part of this pilot test which will see Nasdaq utilise the coloured coin protocol Open Assets based on the Bitcoin blockchain. Fittingly, Chain’s growing popularity will see the Bitcoin startup’s shares be the first traded on the blockchain when the project launches later this year.