according toThe Blockaccording to
According to reports, the US Nasdaq (Nasdaq) exchange is planning to launch a tokenized securities platform. To this end, Nasdaq is negotiating with Symbiont, a blockchain technology company, to reach a relevant cooperation.
This platform provides blockchain companies with a secure token transaction as a new way to raise funds, namely STO (Security token offerings). Unlike ICO, STO is designed to adapt to US securities laws, so it can be regarded as a legalized ICO.
We know since last year that the ICO market is known for its fraud and magic. It has allowed some startups to raise millions of dollars in seconds, drawing scrutiny from regulators such as the U.S. Securities and Exchange Commission.
Many believe that the platform will issue and trade tokenized securities.
December 30, 2015NasdaqNasdaq
Announced that issuers will be able to use its Nasdaq Linq blockchain technology for private securities transactions and will be able to digitally represent ownership records using Nasdaq Linq. Settlement times can be shortened and paper securities eliminated more than ever before.
It was believed at the time that Nasdaq’s use of blockchain technology had the potential to speed up trade settlement of public market transactions. For example, the transaction time was shortened from three days to ten minutes. Therefore, the settlement risk can also be reduced by more than 99%, thereby greatly reducing the cost of capital and systemic risk. Additionally, the technology could allow issuers to significantly reduce the risk and administrative burden of today's manual and multi-step processes.
Recently, The Block's research is optimistic about the launch of the STO platform, saying that STO can help solve some of the problems faced by US stocks. Rather than being made up of a single body that controls shares and settles transactions, security tokens are built on a blockchain operated by distributed miners and nodes (servers). If miners or nodes stop operating, the blockchain will continue to operate as usual. The lack of centralization makes the settlement and transfer of securities more reliable. Therefore, the risk can be reduced.
Still, not everyone is convinced that blockchain will have a significant impact on transactions. Chris Concannon, president of Cboe Global Markets, recently told an industry conference that he doesn’t think blockchain “will affect the liquid assets we trade.”
And Nasdaq CEO Friedman said: "If you decide to do an ICO in a regulated way, then we would love to find out if there is an opportunity to cooperate with people."
Compared with the competition, Nasdaq's performance in the encryption market is relatively cautious.
