Global financial institution Citi and stock exchange Nasdaq are joining forces on a new blockchain payments project. The two institutions are said to
Global financial institution Citi and stock exchange Nasdaq are joining forces on a new blockchain payments project. The two institutions are said to be trying to solve liquidity issues in the private securities market that leverages technology from a blockchain start-up named Chain. Several transactions have reportedly been successfully completed between Citi`s CitiConnect and Nasdaq`s Linq Platform, as the two companies told the public.
Both companies have decided to invest in Chain, a company that raised $30 million in venture funding in 2015.
Speaking at CoinDesk`s Consensus 2017 conference on May 22, the CEO of Chain Adam Ludwin, said that the solution “tightly integrates their two businesses with blockchain technology.”
“This is especially noteworthy because this solution is live today. This announcement is in fact three years in the making.”, as he explained.
“This new payment capability marks a milestone in the global financial sector and represents an important moment in the commercial application of blockchain technology. Through this effective integration of blockchain technology and global financial systems, we can realize greater operational transparency and ease of reconciliation, which can have profound implications for outdated administrative functions in the capital markets”, said Adena Friedman, CEO at Nasdaq, as quoted by Forbes (forbes.com).
The long R&D phase has reportedly been discouraging. However, one executive described the news as proof of the willingness of the participants to make blockchain real in the long run.
“There’s so much excitement, many projects are kind of like stars. They come out, then they fade.”, as the head of Citi Ventures Vanessa Colella told coindesk.com.
It remains to be seen how the project will assist businesses in the sector.