Note from the CEO: Innovation is running well ahead of regulation again (duh) with the potential to issue securities on a blockchain platform. Of course, as would be expected, NASDAQ is at the forefront with its Linq development and other start-ups nipping at the fringes. With massive cost savings and so many products to offer, soon not only stocks and bonds will be offered this way, but countless new products as well.
“Innovation has a history of paving the way for regulation in the long term. In the shorter term there is a common theme of regulators pushing back in opposition of innovation. This is not due to them wanting to prevent innovation (for the most part) but as a way to slow down trends so they have the proper time to be tested and prove they function as planned.
A prime example of this occurring presently is the issuance of securities on the Blockchain. In the majority of circumstances this would be in violation of several security laws. However, it is one of the most disruptive use cases of Blockchain technology that has a high probability of being achieved within the next decade and is applicable to both private and public company stock. While some innovators are afraid to enter this realm due to lack of clear regulation, many are not slowing their aggressive pace. The Nasdaq has already began experimenting with this concept through a $20+ million combined investment in Linq along with countless start-ups working towards a similar common goal.”