Nasdaq Private Market Will be First Project at Nasdaq to Use Chain's Technology
Chain Will be Inaugural Client on Nasdaq Private Market to Leverage Blockchain Technology
NEW YORK and SAN FRANCISCO, June 24, 2015 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq:NDAQ) today announced a new partnership with Chain, the leading blockchain infrastructure provider to financial institutions and enterprises, to leverage the blockchain platform to facilitate the secure issuance and transfer of shares of privately-held companies. Chain, currently privately-held, plans to be the inaugural company to use the blockchain technology on Nasdaq Private Market.
"We are excited about the potential impact of this new endeavor with Chain on the transaction process," said Bob Greifeld, CEO, Nasdaq. "This Nasdaq Private Market project aims to simplify the overwhelming challenges private companies face with manual ledger record-keeping. As blockchain technology continues to redefine not only how the exchange sector operates, but the global financial economy as a whole, Nasdaq aims to be at the center of this watershed development."
The new partnership with Chain marks the latest milestone on Nasdaq's exploratory approach to apply blockchain technology across the company. In May, Nasdaq announced initially leveraging the Open Assets Protocol, a colored coin innovation built upon the blockchain. In its first application expected later this year, the company plans to launch blockchain-enabled digital ledger technology to expand and enhance the equity management capabilities offered by its Nasdaq Private Market platform.
"Chain is thrilled to be working with Nasdaq on blockchain initiatives which will reduce the time, costs, and points of friction across the capital markets," said Adam Ludwin, CEO of Chain. "Nasdaq's technology and thought leadership in creating new, dynamic markets will carry over into the blockchain space in truly disruptive ways."
By using the blockchain to represent securities and manage capitalization tables, stockholders can seamlessly transfer securities between entities, and companies and their affiliates can be provided with a complete historical record of issuance and transfer of their securities. Importantly, the use of a blockchain-based distributed ledger can also offer integrity, audit ability, issuance governance and transfer of ownership capabilities.
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of approximately $9.5 trillion and more than 10,000 corporate clients. To learn more, visit: nasdaq.com/ambition or business.nasdaq.com.
About Nasdaq Private Market
Nasdaq Private Market is the premier equity services provider to private companies. Our end-to-end solution enables private companies to digitize, integrate, and control all of their equity-related functions, including cap table management, shareholder liquidity, investor relations, and capital raising. Whether a company seeks to optimize an eventual IPO or remain private permanently, Nasdaq Private Market provides comprehensive capital market support to meet its needs. For certain eligible investors and shareholders, Nasdaq Private Market is a place to discover and engage with some of the most exciting private companies. The NASDAQ Private Market, LLC is not: (a) a registered exchange under the securities exchange act of 1934; (b) a registered investment adviser under the investment advisers act of 1940; or (c) a financial or tax planner, and does not offer legal advice to any user of the NASDAQ Private Market website. Securities-related services are offered through NPM Securities, LLC, a registered broker-dealer and alternative trading system, which is a member FINRA/SIPC and a wholly-owned subsidiary of the NASDAQ Private Market, LLC. Securities offered through NPM Securities, LLC are not listed or traded on the NASDAQ Stock Market LLC, nor are the securities subject to the same listing or qualification standards applicable to securities listed or traded on the NASDAQ Stock Market LLC. To learn more, visit www.npm.com.
Chain.com is the leading block chain infrastructure provider to financial institutions and enterprises. Chain's platform enables the development and operation of reliable, secure, and private block chain based products and services. Chain's infrastructure services can power any asset type--including securities--on any block chain. Chain's customers span the payments, banking, capital markets, telecom, and energy markets. The company also serves thousands of individual developers and start-ups building innovative products with block chain technology.
Chain.com is based in San Francisco, CA and is backed by leading venture firms Khosla Ventures, RRE Ventures, and Thrive Capital.
Source:The NASDAQ OMX Group, Inc.