Nasdaq has previously announced the launch of an Enterprise Wide Blockchain trial. Today, as reported by the FT, Bob Greifeld, CEO of Nasdaq announced that they plan to increase the number of trials initiated this year.
Mr Greifeld hopes that using the power of the Blockchain distributed ledger could radically reshape the way that securities are settled. “I am a big believer in the ability of blockchain technology to effect fundamental change in the infrastructure of the financial service industry. Clearing houses are a wonderful invention, but if you have a public ledger that is trusted, you can evolve back to a bilateral (trading) world but proceed with instantaneous settlement. We currently settle at T+3 (3 days from point of trade). Why not settle in 5-10 minutes.”
The first Nasdaq market to benefit from the Blockchain trials will be the Nasdaq Private Market offering where privately held share transactions are recorded. It is hoped that this trial will demonstrate some clear benefits over the existing mechanism. The first offering will integrate and complement ExactEquity, Nasdaq private markets cloud based equity management solution.
Nasdaq is clearly laying down a challenge to other existing exchanges to start utilising the benefits of the blockchain. They are also making a clear statement that they won’t simply ignore the bitcoin 2.0 startups that are promoting alternative platforms to trade and settle stock transactions.