Blockchain born with the intention of record keeping.
Yes… Bitcoin uses Blockchain for the first time for keeping transactions record safely in front of the world decentraly.
After that Blockchains several usage benefits covered by several publications and experts.
That means Blockchain will disrupt many industries coming years.
Financial industry is one of them.
Yes… financial industry gets most benefits from blockchain technology.
Now a days financial sector needs faster and secure system to manage operations and blockchain already have all those.
Mainly blockchains pseudonymous nature could help to end identity frauds and its decentralized nature could help to introduce faster payments than centralized systems could ever manage.
That’s why major banks are rapidly boosting their exposure to the blockchain.
Also, Stock exchanges all around the world are now exploring how best they can leverage this technology, invariably as a way to improve costs and efficiency and to lower risks and tighten security.
In this post, we’re looking at some stock exchanges utilizing blockchain technology for their better performance.
Nasdaq is an American stock exchange. It is the second largest stock exchange in the world by market capitalization.
Over the years, Nasdaq has pioneered revolutionary advanced technologies for financial market.
That’s why in June 2015 they entered the partnership with Chain (Leading cloud blockchain infrastructure company) to leverage the blockchain platform and to facilitate the secure issuance and transfer of shares of privately held companies.
And Nasdaq demonstrated its own blockchain technology Nasdaq Linq at the Money 20/20 event in October and even unveiled a list of its private company clients, which included names like Chain.com, ChangeTip, PeerNova, Synack, Tango and Vera.
In 2017 May, Nasdaq and Citi announced an integrated payment solution using a distributed ledger to record and transmit payment instructions based on Chain’s blockchain technology.
These are the implementation of blockchain within the Nasdaq. Also, Nasdaq
Korea Exchange (KRX) is a soul security exchange operator in South Korea. Its headquartered in Busan.
In 2016 November they launched KSM (Korea Startup Market) service that provides a marketplace where the equity shares of startup companies can be traded in the open market.
Blocko Inc, a blockchain startup in Korea participated in the project and implemented its blockchain technology Coinstack for document and identity authentication.
Basically, Coinstack is serviced in two ways, Cloud and On-premise, and supports all types of applications and protocols available via the Bitcoin blockchain.
Furthermore, Coinstack is a development platform that supports both blockchain-based contracts and Ethereum-based smart contracts, enabling companies to easily apply blockchain-based functions to its services.
Also, Blocko providing Coinstack platform to Korea’s JB Bank, Lottecard, KISA, Paygate,
Now Korea Exchange uses Coinstack for better performance of KSM.
Moscow Exchange Group.
Moscow Exchange Group is the largest exchange group in Russia.
National Settlement Depository (NSD) member of Moscow Exchange Group has developed and successfully conducted an e-proxy voting system running on a Blockchain for their bondholders.
The NSD has developed the e-voting system in partnership with DSX Technologies, a distributed ledger technology company based in the U.K.
Luxembourg Stock Exchange (LuxSE).
LuxSE located on Luxembourg City and started its operation in 1928.
They allow their issuer or representatives, to file documents containing regulated information via an Officially Appointed Mechanism (OAM).
These documents are centrally archived and accessible to the general public on the LuxSE website.
In 2016 they allowed issuers to utilize Ethereum’s blockchain technology to provide digital signatures for documents, ensuring authenticity and proof of existence for documents filed in the OAM.
This functionality is available with no extra fee.
Santiago Exchange (SSE).
SSE located Santiago Chile it is the third largest stock exchange in Latin America.
In 2018 SSE launched an innovative and world-class fintech application using Blockchain for its securities lending system, thus they become the first Exchange in Latin America to use such technology in operations.
This world-class application developed by the Exchange and IBM and it is based on the Linux Foundation’s Hyperledger Fabric open source solution.
This new platform helps them to significantly reduce the time and costs of the management processes associated with the securities lending of shares.
These are some stock exchanges already utilizing blockchain, below stock exchange is a
Börse Stuttgart (SWB) is a Germany Stock exchange, second largest in the country and the ninth largest in Europe.
They launched crypto trading app Bison in Jan 31st, 2019.
This app developed by FinTech Sowa Labs — a subsidiary of Boerse Stuttgart Digital Ventures.
One good thing about this app is, it provides free-of-charge trading in Bitcoin(BTC), Etherium(ETH), Litecoin(LTC) and Ripple(XRP).
One limitation of this app is it is still available for usage in Germany only, and its services will work from 6:00 a.m. to 12:00 a.m.
However, stock exchange promised that they will extend trading to 24 hours a day. Also, open access for residents of other European countries will be added by late 2019, while support for more cryptocurrencies is also planned in the
Börse Stuttgart has also partnered with an external banking partner, SolarisBank, which will process euro payments and provide fiat custodial services, the press release notes.
Above are some stock exchanges already implemented Blockchain technology.
But that doesn’t mean those are only a few exchanges interested in blockchain there are many stock exchanges working to implement the technology.
Some Of Those Listed Below.
New York Stock Exchange (NYSE).
NYSE American stock exchange it is a world largest stock exchange by market capitalization.
They working on the most anticipated bitcoin futures trading and custody platform called Bakkt.
Recently Bakkt completed $182.5 million funding round and announced key vacancies at the firm, mostly for senior developer positions.
Japan Exchange Group (JPX).
JPX and IBM (International Business Machine Corporation) are working towards testing the potential of blockchain technology for use in trading in low transaction markets.
Deutsche Börse Group.
The German exchange is working on several prototypes related to blockchain technology and DLT.
And making substantial investments in the development and introduction of ‘state-of-the-art’ blockchain services.
TMX Group, Payments Canada and Bank of Canada successfully tested that blockchain technology is a feasible method of conducting securities settlements.
London Stock Exchange.
They involved in ways to improve the post-trade space using blockchain technology.
National Stock Exchange (NSE).
First demutualized electronic stock exchange in India.
NSE conducted a blockchain trial involving country’s leading banks on a know-your-customer (KYC) data trial, testing blockchain technology.
Ok, these are all the exchanges implemented and interested in Blockchain technology.
If you have any points to add then feel free to mention those in comments.
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