Chain.com, itself a blockchain developer, used Nasdaq's own Linq blockchain system to document a share issuance to a private investor, Nasdaq said.
Best known for being the technology that underpins trading involving the digital currency bitcoin, blockchain is best described as a public ledger solution with storage capacity that is secured by cryptography and a system of algorithmic problem-solving.
By using Linq, Chain.com was able to digitally represent the ownership record of the shares, while "significantly reducing settlement time and eliminating the need for paper stock certificates", Nasdaq said. It also allowed the issuer and investor to complete and execute share subscription documents online.
http://www.out-law.com/en/articles/2016/january/nasdaq-claims-first-blockchain-based-securities-issuance/
