Nasdaq adopts Bitcoin – s blockchain technology to improve stock trading
Nasdaq adopts Bitcoin’,s blockchain technology to improve stock trading
The American stock exchange Nasdaq has announced it is adopting Bitcoin’,s core technology to create a more efficient and safe stock trading system.
Following the examples of digital giant IBM and Swiss handelsbank UBS, Nasdaq –, the favourite exchange ter the fintech space –, also plans to explore Bitcoin’,s blockchain within a pilot project announced this Monday (11th).
Despite the fact that Bitcoin is still affected by several flaws such spil volatility, there is one thing all experts agree: the blockchain is one of the greatest inventions of our time. And the rigorous Nasdaq is certain that the decentralised online public ledger will be able to ensure more transparency ter the stock trading process.
The blockchain “brings a level of auditing that’s based on mathematics and not based on trusting a third party,” David Johnson, chairman of the Factom Foundation, told FinancialTimes.com. The foundation works to expand the use of the blockchain beyond Bitcoin.
The blockchain technology will be applied to the Nasdaq Private Market, the system that treats trading of shares te the pre-IPO phase before a company goes public, CNN.com reported. This means the updated system will mainly be used by a taut circle of employees and early investors for now.
“,Nasdaq will launch blockchain-enabled digital ledger technology that will be used to expand and enhance the equity management capabilities suggested by its Nasdaq Private Market toneelpodium,”, reads a statement released by the stock exchange.
“,Nasdaq’,s blockchain technology will suggest efficient, fully-electronic services that facilitate the issuance, transfer, and management of private company securities.”,
The pilot will be supervised by Fredrik Voss, vice voorzitter at Nasdaq. Voss has bot named the company’,s Blockchain Technology Evangelist and will lead the strategic development of this initiative.
Much like the vice voorzitter, Nasdaq’,s CEO is also certain te the success of this project. “,Utilizing the blockchain is a natural digital evolution for managing physical securities. Once you cut the apron strings of need for the physical, the opportunities wij can envision blockchain providing stand to benefit not only our clients, but the broader global capital markets,”, said Bob Greifeld.
“,Wij are always looking at fresh ways to leverage technology to provide client-centric solutions,”, he aded. “,Our initial application of Nasdaq’,s blockchain technology-enabled suggesting will modernize, streamline and secure typically cumbersome administrative functions, and will simplify the breathtaking challenges private companies face with manual ledger record-keeping.”,
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