Nasdaq’s Blockchain-Based Linq Issues Chain Shares
NEW YORK — Nasdaq (Nasdaq: NDAQ) has recently announced that it has issued shares of the company Chain over its blockchain-based private market, Linq. The issuers were “able to use Nasdaq Linq blockchain ledger technology to successfully complete and record a private securities transaction.” This feat, the company explains, is a first of its kind using distributed […]
NEW YORK — Nasdaq (Nasdaq: NDAQ) has recently announced that it has issued shares of the company Chain over its blockchain-based private market, Linq. The issuers were “able to use Nasdaq Linq blockchain ledger technology to successfully complete and record a private securities transaction.” This feat, the company explains, is a first of its kind using distributed ledger technology.
“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”
Nasdaq believes the use of Linq brings “promise” to trade settlement and public market transactions. The company says these actions of clearing and settlement can be accomplished in 10 minutes as opposed to the current three-day standard. Linq, they claim, will result in risk exposure being reduced by 99% in the future with these protocols. This transaction shows the company plans on taking steady strides since they announce Linq back in October. Following the announcement, they explained that companies like Chain and Changetip would be participating with the Nasdaq-created blockchain system and initiate various aspects of trading shares through the company’s private market.
Nasdaq is one of the largest services offering trading, clearing, exchange technology in both public and private markets. Linq is the now the company’s version of asset trading verified through blockchain protocol and can be useful with keeping shares within the financial institutions private market.
In the initial October press release, Nasdaq create a lot of buzz when the exchange announced it will work with Chain’s platform. This is because Chain wants to create a blockchain network “that can power any type of asset in any market.” The startup is pleased to be the first experiment using Linq and thinks this breaks precedent within financial market environments.
CEO of Chain, Adam Ludwin explains:
“No doubt this is a powerful milestone for Chain and our partnership with Nasdaq. We couldn’t be happier with the results of the transaction. It was seamless and met our objective of drastically reduced manual ownership transfer.”
Linq seems to be going head-to-head with Patrick Byrne’s creation TØ (T-zero.) The blockchain startup born out of the mind of Overstock’s CEO has also created a cryptographic ledger system that can issue shares and settlement. Back in October, it was reported that the hedge fund Clique Fund spent 10 million dollars on thirty stocks represented on the Dow industrial average. Linq and TØ have very much in common incorporating this technology into the trading realm. If settlements can be handled within ten minutes and secured via cryptography, investors and trader would be able to operate faster and more efficiently in today’s markets. By using this platform to issue shares of Chain’s record of ownership, it tests the waters of what’s to come with this new trading vehicle.
“Through this initial application of blockchain technology, we begin a process that could revolutionize the core of capital markets infrastructure systems,” explained Greifeld. “The implications for settlement and outdated administrative functions are profound.”
What do you think about Chain shares issued over Nasdaq’s Linq? Let us know in the comments below!
Images courtesy of Shutterstock, Nasdaq, and Chain websites