According to an acknowledgment from the Nasdaq Blockchain product manager, Johan Toll, the Stock exchange’s Blockchain platform is in its trial stage preceding its deployment.
Nasdaq aims to digitize its stock trade to streamline transactions and to ensure that operations are instant and transparent. The project is designed to guarantee that Nasdaq abandons the current outdated technology that is not only fragmented but dependent on intermediaries. Additionally, the stock exchange needs DLT to support Crypto indices that its planning to roll out.
The trial of the Blockchain system is happening in Sweden and experts at Nasdaq and the entire stock markets believe that the technology will be a game changer for both the exchange and the industry at large.
Blockchain Adoption Is On The Rise
Industries such as the stocks markets have been lagging behind in Blockchain adoption. Some experts believe that DLT is the emerging technology that has the potential to create fast and efficient systems.
This trial has the potential to herald a new era of Blockchain powered stock markets as it is becoming the norm in other industries such as finance, e-commerce, cross-border payment, insurance, education, etc.
Streamlining Nasdaq Operations
Nasdaq is the second largest stock exchange in the world that is based in New York. The platform offers the most liquid mercantile solutions that are in urgent need of a next-generation technology upgrade. According to Johan Toll, the current system uses current technologies such as fax machines that are fragmented.
On the current system, intermediaries play a crucial role in the issuance of shares and their participation makes transactions to be slow and inconveniencing.
The Stock Exchange Is Introducing Crypto Indices
Nasdaq is planning to offer Bitcoin and Ethereum indices. Experts believe that this service will play a vital role in responding to the US SEC’s concerns about the price of pricing of Cryptos. The involvement of a trusted exchange platform such as Nasdaq that uses approved methodologies of calculating price indices will give SEC commissioners the confidence to approve trading of Digital Tokens at mainstream platforms.
Should the Nasdaq Blockchain project go through and the Crypto indices are rolled out, this could be a precursor to the approval of the pending Bitcoin ETF as well as other Crypto derivatives. The derivatives hold the key to institutional traders’ participation in Crypto markets and the traditional stock markets are trusted trading platforms.
Nasdaq Involvement Will Prop The Market
The Nasdaq Tokenization effort in testing the new Blockchain system as well as planning to launch Bitcoin and Ethereum indices will play a central role in ensuring that there is increased investor activity in Cryptocurrency markets. This will further prop up the already increasing Crypto trading volume by attracting more institutional investors.
Additionally, Nasdaq will stabilize the prices of Cryptos as the approved trading will be facilitated on high tech and certified infrastructures that are foolproof.
Further, due to Nasdaq’s access to a large portfolio of assets and Fiat currencies, this would deepen Crypto markets liquidity and attract more investors on Crypto exchanges and Digital Tokens points of sale.