NASDAQ Using Bitcoin Tech?

The NASDAQ stock exchange has begun to experiment with something that may change the way of how stocks are traded. They have decided to use the blockchain. For those who are unfamiliar with this, blockchain is the same technology that powers the system Bitcoin operates on. Essentially, it’s a computer program that can process transactions and keep a reliable digitized record.

In a press release on their website, NASDAQ CEO Bob Greifeld said, “”Utilizing the blockchain is a natural digital evolution for managing physical securities. 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.”

How much attention should the world give this experiment? NASDAQ has called it “an enterprise-wide initiative.” While they are not necessarily using bitcoin, they are turning its technology around to benefit them. The plan is speed up the pace at which trades are conducted because the original system they used was tedious and slow.

Greifeld also said, “We are always looking at new ways to leverage technology to provide client-centric solutions. Our initial application of Nasdaq’s blockchain technology-enabled offering will modernize, streamline and secure typically cumbersome administrative functions, and will simplify the overwhelming challenges private companies face with manual ledger record-keeping.”

Not all of NASDAQ is following under this. It is an experiment after all.  However, the project is being conducted in the NASDAQ Private Market.  More than 75 companies are participating in this. Their jobs involve the handling of sales and transfers.

It will be interesting to see what comes out of this project. Already, bitcoin and its tech have made their way into the financial parts of New York. What are your thoughts on this? By changing an outdated system, can we expect NASDAQ to bring us change? Let me know what you think in the comments.