The demand for blockchain technology is growing faster than anticipated. It is reportedly becoming a ‘basic need’ for a majority of traders and exchanges. In that regard, NASDAQ has agreed to work with Microsoft Azure to create systems, which would facilitate the implementation of the technology. NASDAQ is the second largest stock market globally while Microsoft’s Azure is the backbone of cloud computing and blockchain service. With their respective strengths, they will simply benefit the market equally.
NASDAQ’s Financial Framework (NFF), created in 2016 offers a wide range of business applications. Its customers get to interact with the benefits of emerging technologies in growing their businesses.
A combination of NFF and Microsoft’s blockchain technology will eradicate complications
Institutions have continued to adopt structures and technology within the capital market. This is according to NASDAQ’s s senior VP of Enterprise Architecture Tom Fay. However, managing of payments and delivery of transactions has not been rosy. Industry participants have had to deal with complexities, which are existing within the ecosystem.
Nonetheless, Fay says the blockchain system should take care of the said difficulties. Given that it is secure with an instantaneous ability to match buyers and sellers, it will definitely become a system of choice.
He states, “With multiple blockchains in use by various industry participants, we believe that the combination of NFF and Microsoft’s blockchain technology can remove some of the project complexities that exist in this realm.”
NASDAQ’s interaction with cryptocurrency and blockchain is not a new thing
NASDAQ has been in the financial industry since 1971. The company’s customer 4are from different industries such as central securities depositories, exchanges, and clearinghouses. Even then, more participants are likely to join in.
Apparently, it is not the first time that NASDAQ is interacting with the blockchain technology. Though not in a deep sense, the company has various patents linked to the technology. Thus through the partnership, it will just be building on its already existing strengths.
Earlier in the year, it joined hands with Ernst & Young (EY) with an aim to develop blockchain solution for royalty management. This is a clear indication that it is in full support of the cryptocurrency market.