The president and chief operating officer of Nasdaq, Adena Friedman, has said that it is hoping to share information with the Hong Kong Stock Exchange on its blockchain technology, according to a report from the South China Morning Post.
According to Friedman, it has become a priority for the New York-based Nasdaq to work with the Hong Kong Stock Exchange.
Last month, the Hong Kong Monetary Authority (HKMA) announced that it was setting up a Fintech Innovation Hub and a Supervisory Sandbox enabling banks to conduct proof of concept trials and services. It is hoped that this will boost the development of Fintech in the financial services sector in the country.
Speaking to the SCMP, Friedman said that the technology Nasdaq uses means that the Hong Kong Stock Exchange can grow and leverage blockchain if they choose to.
The [Hong Kong markets] can use ours or they can use someone else’s – we’re agnostic to that in terms of how the technology is created.
Even though the stock exchange is watching the developments of blockchain and how it is being used within the financial sector, many believe that blockchain will transform Hong Kong’s Fintech scene in the long run.
Despite the fact that the idea of blockchain adoption is still relatively new in Hong Kong many are certain that blockchain will help to attract the world to Hong Kong.
However, Jolyon Ellwood-Russell, partner at Simmons & Simmons, said to the SCMP that while he didn’t think that Hong Kong was falling behind compared to others with blockchain adoption, he did believe that building up trust for the technology was an issue.
Blockchain is new. You cannot just do it, you need to understand the technology. The processing power at the moment is just far too slow – the stock exchange would just freeze.
Of course, with the HKMA already putting measures into place to test blockchain and the solutions it can provide, it seems that the country is determined to keep up with other countries in the blockchain race.
Featured image from Shutterstock.
Last modified: October 11, 2016 14:25 UTC