Nasdaq and Microsoft work together on blockchain project

Nasdaq, the second largest stock exchange in the world, has announced this week in a press release its plan to work with Microsoft to apply blockchain technology to the Nasdaq Financial Framework (NFF).

Microsoft plans to integrate their 'Azure' blockchain technology with the NFF platform to create systems that make it easier for Nasdaq customers to arrange payments, deliveries and settlements. The technology would also help to link the right buyers and sellers.

Tom Fay, senior vice president of business architecture at Nasdaq, sees potential in blockchain technology and collaboration:

“With multiple blockchains in use by various industry participants, we believe that the combination of NFF and blockchain technology from Microsoft can remove some of the complexities that exist in this space. In addition, as more industries switch to technology for capital markets, we see the potential of blockchain’s safe, frictionless and immediate matching of buyers and sellers.”

Magnus Haglind, senior vice president and head of product management at Nasdaq, is also convinced that it is important to be ahead in the market:

“Our industry evolves faster than ever with the arrival and progress of cloud, blockchain, artificial intelligence (AI) and more. Important players in the industry look at these technologies to investigate how they can be more effective and efficient, but also to gain competitive advantage.”

Nasdaq has always been at the forefront when it comes to technology in the financial sector. It was the first player in the financial sector to open an electronic exchange in 1971. The investment in blockchain technology does not come as a surprise.

Azure blockchain technology from Microsoft is based on the Ethereum platform and is part of the R3 consortium blockchain network.