Nasdaq to Help Financial Enterprises Create their First Digital Assets

May 3, 2020 7:34 PM UTC

Financial institutions are encountering unique challenges as customers demand better results and faster access. While many financial institutions are shifting toward digitalization, there are still hurdles that digitalization cannot overwhelm. 

Many of the issues that financial institutions are facing can be resolved only by blockchain technology. Several distinct industries like aviation, tourism, and telecommunication are actively working to adopt blockchain and digital assets. As financial institutions compete to execute high-speed transactions, enhance transparency, and reduce costs, blockchain can offer first movers a major advantage. 

Digital Assets for Financial Corporations

Nasdaq, one of America’s major stock exchanges, has teamed up with R3, a blockchain solutions firm, to help clients gain an edge through blockchain implementation. 

On April 29, R3 unveiled the collaboration by stating that Nasdaq will utilize the firm’s blockchain software, Corda, and several other services. According to the R3 announcement, Nasdaq intends to develop a new system that assists financial institutions to deploy digital assets.

Nasdaq digital assets head Johann Toll stated that the firm started a new project to focus on developing “full lifecycle solutions for digital assets marketplaces.” Regarding the partnership, he added:

“Their platform fits well into Nasdaq’s technology ecosystem and by connecting to the platform, we can harness the power of a scalable design that delivers a new level of interoperability and ease of integration to any current legacy technology system.”

Nasdaq Plans to Build a Decentralized Marketplace

Nasdaq has highlighted several sectors where digital assets may play a significant role. 

There are several rifts in the financial sector, and Nasdaq intends to fill these rifts through digital assets. The firm’s novel project will support different organizations, through several means such as trading, settlement, custody, and issuance.

Johann Toll hinted that the market will witness several financial marketplaces for trading tokenized assets. He added that the development will enhance transparency in the market and diminish resistance by removing the middleman.

Johann also stated that both of the firms (Nasdaq and R3) have announced a long-term, non-exclusive collaboration, which means the two companies can still team up with various blockchain organizations to support financial institutions to develop the market for digital assets.

Blockchain and digital asset integration with financial institutions will increase transparency and efficiency in the financial markets, but there are still numerous restrictions that require to be overwhelmed for the outlooks of a new financial model to become successful at a global scale. 

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