Nasdaq May Launch Security Token Platform
October 16, 2018
The US-based stock exchange Nasdaq is seeking ways to create its own blockchain platform for security tokens. The issued coins are claimed to be optimized for the existing Law on Securities.
According to The Block website, to set the new project going Nasdaq holds negotiations with several blockchain startups including Symbiont, the one that gained financial backing earlier from the Alibaba founder Jack Ma.
The would-be platform is expected to allow for both issuing tokenized securities and trading them. For now these kind of services are provided by Polymath, tZero and TrustToken.
In addition, Nasdaq showing interest in security tokens was first rumored back in 2015, while 2017 saw the exchange together with the Chain startup applying blockchain in trading securities of limited private companies.
Note that according to the recent study by The Block, tokenizing securities may turn a solution for numerous problems related to the US national debt as security tokens are based on blockchain and managed by distributed nodes while shares and settlement operations are controlled by single state institution.
As the article ran, blockchain net members provide continuous system operation while decentralized nature makes administering and transferring of securities safer and eliminates specific risks.
Remember that earlier the head of Nasdaq Adena Friedman called cryptocurrencies “the right next step in the space of currency”.