Nasdaq OMX Group Inc is reportedly exploring how a blockchain-based solution could change the way shares are transferred and sold manually.
The company will trial the technology in Nasdaq Private Market, a capital marketplace launched in January 2014, which sets out to connect private companies and global investors, allowing the latter to purchase shares which may eventually go public before they do so.
Nasdaq chief executive Robert Greifeld told The Wall Street Journal:
“Utilising the blockchain is a natural digital evolution for managing physical securities.”
He added that the technology held the potential to “benefit not only our clients, but the broader capital markets”.
The company has appointed Fredrik Voss, vice president and deputy head of commodities, as its new blockchain technology lead.
Blockchain tech exploration
Nasdaq OMX Group, which owns and operates the Nasdaq stock exchange, is the latest to explore the cryptocurrency space.
Swiss investment bank UBS announced the opening of a London-based blockchain technology research lab to explore the application in the financial services industry just last month.
Bankers from traditional finance have also previously praised blockchain technology, highlighting its potential to transform the industry.
Ex-JP Morgan Chase & Co executive Blythe Masters joined bitcoin trading platform Digital Assets Holdings LLC as chief executive in March. The company is developing a blockchain-based solution for settling transfers of securities and funds.