In an announcement today, Nasdaq revealed the issuance of its client Chain.com’s share to a private investor using the company’s private-market blockchain platform Linq.
Calling it a ‘major advance’ in blockchain technology for private companies, a Nasdaq press release has announced the issuance of shares by Chain.com to a private investor using its blockchain-powered trading platform, Linq.
The transfer of share represents the first-ever successful private issuance of shares using blockchain technology.
The transaction represents a quick leap from launch to operations for Nasdaq’s Linq, a platform first revealed by Nasdaq during the end of October after its announcement in May. At the time, Nasdaq also revealed six private companies who signed up as participants for the private blockchain-based platform, including Chain.com. The others are ChangeTip, PeerNova, Synack, Tango and Vera.
At the time, Nasdaq CEO Bob Greifeld spoke about the innovation of Bitcoin’s blockchain used for private markets.
Blockchain applied to the private market is innovation built on top of innovation, and carries with it the opportunity to forever alter the future of financial services infrastructure.
The transaction was undertaken after Chain was enabled to “digitally represent a record of ownership,” with the benefit of significantly reduced settlement times and the complete negation of paper stock certificates.
With the announcement, Nasdaq also claimed big potential for blockchain technology in public markets such as expediting trade settlement for transactions. Citing lowered settlement risk exposure and significant cost-cutting, the announcement also volunteers an example of assisting in expediting trade clearing and settlement by completing transactions in ten minutes, compared to the current standard of three days.
In a statement following Chain’s issuance of shares to a private investor on Nasdaq’s Linq, Greifeld stated:
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.
He further added:
Through this initial application of blockchain technology, we begin a process that could revolutionize the core of capital markets infrastructure systems. The implications for settlement and outdated administrative functions are profound.
The press release did not reveal the number or value of shares issued, nor the investor at the receiving end of the issuance.
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Last modified: June 10, 2020 1:37 PM UTC