The US stock exchange Nasdaq has entered into a long-term collaboration agreement with the enterprise blockchain firm R3, to create a full-spectrum digital asset marketplace.
According to a press release on Wednesday (April 29, 2020), with a technology agreement with the R3 blockchain software firm, Nasdag will use the Corda Blockchain R3 to build its market technology business.R3’s Corda is an open-source blockchain platform that enables users to create decentralized applications (dApps). The new collaboration aim is to provide businesses with an easily accessible, comprehensive solution for issuing tokens and building trusted digital asset markets.
Commenting on the partnership Johan Toll, Head of Digital Assets at Nasdaq, said,
“This new relationship between Nasdaq and R3 will play an important role in Nasdaq’s continuous development of solutions and services that support the creation and growth of dynamic, trusted digital asset marketplaces”
Nasdaq is currently providing market infrastructure solutions to more than 120 + marketplaces, central securities and regulators, clearinghouses, and many digital asset exchanges. The R3 collaboration will accelerate Nasdaq’s efforts to help marketplaces for digital assets enhance transparency requirements to compete with their peers on the capital markets.
According to Cathy Minter, Chief Revenue Officer, R3 said:
“Financial institutions are becoming increasingly aware of the huge potential for servicing the needs of digital assets. We can help them accommodate these assets with solutions that are designed for more secure, reliable, and regulated environments. Together with Nasdaq we will provide a world-class platform on which digital asset markets can be built, helping to rapidly accelerate the growth of these markets and others around the globe.”
As a technology provider for the capital markets, Nasdaq has early implemented blockchain across various ventures and proof of concepts that have embraced distributed ledger technologies. In January last year, Nasdaq started working with 7 different cryptocurrency exchanges by offering them proprietary market surveillance technology to improve the transparency standard.
Crypto exchanges were required to pass the Nasdaq-prepared test in order to qualify for the partnership and use of surveillance technology. According to the reports, only seven exchanges could pass the test. The proprietary market surveillance technology from Nasdaq scans for fraudulent trade patterns to ensure the volume of trading is free from fraud and manipulation