Nasdaq announced plans to leverage blockchain technology as part of an enterprise-wide initiative.
The exchange operator will initially leverage the Open Assets Protocol, a colored coin innovation built upon the blockchain. In its first application expected later this year, Nasdaq will launch blockchain-enabled digital ledger technology that will be used to expand and enhance the equity management capabilities offered by its Nasdaq Private Market platform.
A blockchain is a public ledger of allBitcointransactions that have ever been executed. It is constantly growing as completedblocksare added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order. Each node (computer connected to the Bitcoin network using a client that performs the task of validating and relaying transactions)gets a copy of the blockchain, which gets downloaded automatically upon joining the Bitcoin network. The blockchain has complete information about the addresses and their balances right from the genesis block to the most recently completed block.
Nasdaq’s blockchain technology will offer fully-electronic services that facilitate the issuance, transfer, and management of private company securities. Fredrik Voss, Vice President at Nasdaq, has been named the company’s Blockchain Technology Evangelist to lead the strategic development of this initiative for Nasdaq.
“Utilizing the blockchain is a natural digital evolution for managing physical securities,” said Bob Greifeld, chief executive at Nasdaq. “Once you cut the apron strings of need for the physical, the opportunities we can envision blockchain providing stand to benefit not only our clients, but the broader global capital markets.”
According to Nasdaq, it is one of the first multinational financial services companies to explore ways to leverage the blockchain in a non-currency manner. The company’s first application will provide a fully-electronic, distributed ledger-style solution for accurate record-keeping that complements ExactEquity, Nasdaq Private Market’s cloud-based equity management solution that enables private companies to manage their capitalization table and stock plans more efficiently.
