Microsoft, Nasdaq Pair On Blockchain Initiative

Microsoft is reportedly partnering with Nasdaq on blockchain, in which its Azure blockchain services will integrate with Nasdaq’s Financial Framework.

According to a report in Bloomberg citing the companies, Nasdaq’s Financial Framework offers software for traders, exchanges and clearinghouses to interact with each other. The partnership is aimed at creating a blockchain system to help technologies work together for Nasdaq customers. In one example, the technology will more easily match buyers and sellers to manage delivery, payment and settlements. Nasdaq Financial Framework will provide customers with the ability to use blockchain via one interface. The companies hope that will ease and accelerate blockchain use, and enable customers to choose the option that works best for them. The partnership is expected to be announced late Tuesday (Oct. 30), noted the report.

Last spring, Citi Treasury and Trade Solutions announced it was teaming up with Nasdaq to develop a blockchain solution for commercial payments. Citi is already working with Chain, having launched CitiConnect for Blockchain, which aims to link Citi’s existing payments tools with the blockchain infrastructure. The tool will provide an “end-to-end transactional process for private securities,” reports explained, offering companies a way to make global payments via CitiConnect for Blockchain and Nasdaq’s WorldLink payment solutions, offered via its Linq portal. The technology will provide greater transparency into the payments process.

Citi’s blockchain for commercial payments came as the bank advised that corporate banking must take a “marathon, not sprint” approach to innovation and integration of new technologies like blockchain. In 2016, Citigroup released a report that suggested traditional FIs will always be necessary in the transaction process, and thus shouldn’t fear immediate disruption from blockchain, but must understand it. While cryptocurrency values have tanked in 2018, the technology that underpins it – blockchain – is taking off with financial companies around the globe.