Nasdaq, the second largest exchange in America, recently indicated that the financial institution’s blockchain project could involve cryptocurrency payments to streamline its business processes. However, he said that the scheme might not include Bitcoin [BTC].
Johan Toll, Head of NASDAQ of Blockchain Product Development, recently mentioned in an interview that the institution had started using decentralized blockchain techniques to improve its power and improve power in the European mutual fund business.
Johan Toll revealed that eight Swedish banks were collaborating with the Exchange for the use of private permissions Hybrid Ledger to refine mutual fund trading.
“The mutual funds business in Sweden, in the Nordics, in Europe and in many places in the world are very, very fragmented, a lot of intermediaries, it takes a long time to settle the trades and it’s a lot of manual intervention, fax machines are even used still.”
He further added,
“So for that we see where blockchain can have a really, really good role here for how we could create a shared trusted network between the intermediaries and guarantee them the transfer and issuance of those shares, as well as manage the payment of those shares.”
Toll indicated that the use of cryptocurrecy was also being considered for full colleague payroll payment. However, he did not believe in the theory that Bitcoin was the perfect match for Nasdaq.
He clarified that the difference between bitcoin and blockchain was that the former was generally public and had open partnerships, while Nasdaq was more focused on blockchain core technology for its financial markets. He added,
“The problem with Bitcoin is that if something goes wrong, you don’t have anyone to call, there’s no one to sue or get your money back, so if they get your private key they can literally steal all your Bitcoins and there is no way for you to get them back.”
John Toll said that he was confident about the capacity of the blockchain technology and he believed that it would eventually revolutionize business processes for major market exchanges around the world.