The result of cooperation between Nasdaq and Chain will be the use of blockchain on Nasdaq Private Market.

Nasdaq has officially confirmed its partnership with Chain in order to launch a blockchain-based program. Blockchain, which is an underlying technology of bitcoin, is planned to be used in Nasdaq Private Market, a blockchain platform aimed at simplifying of shares issue and transfer process. It enables private companies to more effectively manage their investor relationships and equity ownership.

Both companies sound optimistic talking about forthcoming cooperation. “We are excited about the potential impact of this new endeavor with Chain on the transaction process,” said Bob Greifeld, CEO at 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”.

Adam Ludwin, CEO of Chain, echoes: “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. Nasdaq’s technology and thought leadership in creating new, dynamic markets will carry over into the blockchain space in truly disruptive ways.”

Thus the companies exchanged words of mutual approval. By the way, Chain will be the first company to test new technology on Nasdaq Private Market.

Nasdaq does not deny what power it sees in blockchain. It strongly believes that bitcoin underlying technology will offer a simpler way to transfer securities between companies and to safely record transfers. The Nasdaq Private Market is seen as only the first step in a greater initiative managed by Fredrik Voss who is therefore called Blockchain Technology Evangelist.

Nasdaq admits that the company is constantly seeking for new ways of improving financial system: “Innovation has always been–and will continue to be–part of our DNA. Today, the company is firmly established as a technology provider and strives to be the leading technology, trading, and intelligence provider to capital markets.”

Chain offers its customers reliable blockchain-based products and services. The company now takes leading positions as a blockchain infrastructure provider. It works both with financial organization and individual developers.

Not that long ago Chain announced its partnership with Gyft. The result was issue, transfer and redemption of USD gift card using “blockchain as the payment rails and tiny fractions of bitcoin to pay the fees required to ride these rails”.

Present partnership only confirms the fact that companies are starting to understand and appreciate the possibilities of blockchain. Ludwin says the right thing: “One of the benefits of having this immutable public ledger being the record-keeping mechanism of that is you know it’s not going anywhere. You can trace back every action and activity on the company for a very long time. That will allow companies to operate successfully for many years”.