How are you thinking about your relationship with blockchain technology? This security token is quickly gaining popularity and now is expanding its relationship with Nasdaq.
Nasdaq's potential venture into the security token market has seen the New York-based financial services company engage several blockchain startups, including Symbiont, in its efforts to develop the platform, which is planned to handle both the issuance of security token offerings (STOs) as well as secondary market trading.
Security tokens are tokenized financial securities that can be issued to raise funds in the form of equity or debt and can be traded on exchanges in the secondary market. The key difference between security tokens and today's cryptocurrencies and digital tokens is that they are compliant with regulations and securities laws.
Nasdaq's push into the tokenized securities market is a testament to the potential of security token offerings becoming an integral part of the capital markets. Nasdaq's new platform would compete with the likes of tZERO and TokenTrust.
Nasdaq is not new to the Blockchain
Interestingly, the planned tokenized securities trading platform would not be Nasdaq's first venture into the world of blockchain. In 2015, for example, the company issued private securities of the distributed ledger technology startup Chain.com on the blockchain.