At the Money 20/20 conference held in Las Vegas, NASDAQ announced the initial roster of private company clients for NASDAQ Linq, a platform that allows private companies to trade their company’s shares using bitcoin-powering technology, even before pre-IPO.
The first private company clients will include: Chain.com, the blockchain API company that has tied up with NASDAQ to develop the platform, ChangeTip, a bitcoin company specializing in micropayments, and PeerNova a blockchain-inspired ledger and database company, mobile messaging app TangoMe, and data-security company Vera.
NASDAQ Linq is a digital ledger technology that leverages a blockchain to facilitate the issuance, cataloging and recording of transfers of shares of privately-held companies on the NASDAQ Private Market. It will complement ExactEquity, NASDAQ Private Market's cloud-based capitalization table management and stock plan administration solution. NASDAQ Linq clients will be provided with a comprehensive, historical record of issuance and transfer of their securities, offering increased auditability, issuance governance and transfer of ownership capabilities.
"We are extremely encouraged by the initial demand for NASDAQ Linq from these innovative, first-mover companies and the validation it represents of our application of blockchain technology," Bob Greifeld, CEO of NASDAQ, said in the press release. "Blockchain applied to the private market is innovation built on top of innovation, and carries with it the opportunity to forever alter the future of financial services infrastructure."
"Chain is thrilled to be powering NASDAQ Linq and to be an inaugural client of this innovative new platform," Adam Ludwin, CEO of Chain.com, said in the press release. "We are excited to leverage NASDAQ Linq to issue and manage our company's securities in a more efficient and transparent way."
NASDAQ has since showed intent on blockchain for very long time. The stock exchange firm initially revealed (May 2015) that they were planning to use blockchain as an enterprise-wide technology to enhance their capabilities on the NASDAQ Private Market Platform.
Later, in June 2015, it announced a partnership with Chain, a blockchain infrastructure provider for FIs and enterprises. Chain helps companies build financial products around blockchain technology with its bitcoin data API. NASDAQ has chosen Chain to run a pilot around blockchain technology on the NASDAQ Private Market.
In September, Visa, NASDAQ, Citi and other prominent payment companies invested $30 million in Chain.com.
It clearly shows that the company believes in blockchain technology and its power to disrupt the financial industry.
“Blockchain technology continues to redefine not only how the exchange sector operates, but the global financial economy as a whole,” said Bob Greifeld, Chief Executive of NASDAQ.
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