NASDAQ on the Blockchain?

[Abiky]

Now that Blockchain technology is extremely popular, it should only be a matter of time before the stock market adopts it to a full extent. Imagine stock exchanges like the NASDAQ and the S&P 500 making use of Blockchain technology. It would totally revolutionize the stock market. Performance, cost-efficiency, and security will improve in many ways. This will also enable interoperability between the world of stocks and crypto.

I sometimes wonder why the stock market is still using outdated technology when Blockchain is already there? There could be many reasons to this including (but not limited to) the immaturity of Blockchain tech, lack of regulation, etc. Still, we cannot discard the possibility of this happening in the future as Blockchain tech continues to take the world by storm.

What are your thoughts? Do you think the NASDAQ will use Blockchain technology in the future? If not, why? Is the stock market not ready to transition to the Blockchain world? Why do you think stock exchanges haven't adopted Blockchain tech to this point? Your input will be greatly appreciated. Thanks

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[The Sceptical Chymist]

I sometimes wonder why the stock market is still using outdated technology when Blockchain is already there?

It probably has something to do with Wall Street being set in its ways--and probably people are thinking about it but haven't figured out exactly how to implement such a huge change.  And it would be a huge change IMO.  It's not a small change to implement blockchain tech into the stock market, as it would be something completely new and might change a lot of things.

This question has been brought up before, because I remember writing that I hoped Wall Street would indeed start to operate on a blockchain.  I think the silly 3-day settlement time for stock trades would be done with, and stocks might even be traded 24 hours/day.  It's the latter thing that I was hoping would come about, because it's one of the things I like about crypto exchanges, that they're always open for business.  But stocks?  M-F, 9:30am-4pm; that's it, and IMO it's an antiquated system. 

[ReiMomo]

I’m trying to retrieve an article about Nasdaq and other stock exchange’s plans towards Blockchain Technology but I wasn’t able to find it anywhere.

But it says that Stock Market Exchange Executives have initiated to do some research about Blockchain technology and if it would help the stock market on its operation. The initial results were good, findings are in flying colors. The only part they are worried about is that it is new to them. Feasibility-wise, it’s possible as well as per the writer.

But I don’t think it will be adopted within the next 3 years. Let’s just give them time to study and gather data about it and all above is my personal opinion.

[Coyster]

What are your thoughts? Do you think the NASDAQ will use Blockchain technology in the future? If not, why? Is the stock market not ready to transition to the Blockchain world? Why do you think stock exchanges haven't adopted Blockchain tech to this point? Your input will be greatly appreciated. Thanks

The thing is I think the reason NASDAQ/the stock market are as of now yet to implement the blockchain technology is the same reason why other 'fields', institutions etc, are yet to do the same too or are rather ambivalent about the technology, in my opinion, even if they will, it will take some time, and tbh, I do not see any reason why they won't, except if they are yet to understand how best to make it work, as that can be one of the major things hampering it's use.

Having said that, it's basically possible that in the long period, the blockchain technology will be used in many fields/areas, institutions and many more, by then more research must have been done by those interested in it, and a suitable and easy way of implementation will be around for use.

[Obito]

They're much faster than the current blockchain so I don't think that they will adopt the technology, they are currently testing for microwave radiation to transmit trades much more faster than they currently have, I think the trade speed in stock market is around 100k trades per half a second.

[Tytanowy Janusz]

Now that Blockchain technology is extremely popular, it should only be a matter of time before the stock market adopts it to a full extent. Imagine stock exchanges like the NASDAQ and the S&P 500 making use of Blockchain technology. It would totally revolutionize the stock market. Performance, cost-efficiency, and security will improve in many ways. This will also enable interoperability between the world of stocks and crypto.

I sometimes wonder why the stock market is still using outdated technology when Blockchain is already there? There could be many reasons to this including (but not limited to) the immaturity of Blockchain tech, lack of regulation, etc. Still, we cannot discard the possibility of this happening in the future as Blockchain tech continues to take the world by storm.

What are your thoughts? Do you think the NASDAQ will use Blockchain technology in the future? If not, why? Is the stock market not ready to transition to the Blockchain world? Why do you think stock exchanges haven't adopted Blockchain tech to this point? Your input will be greatly appreciated. Thanks

Name use cases that could be improved by NASDAQ using blockchain technology. Blockchain is slow and expensive. Stock Market Exchange needs to be fast and cheap ... and centralized - especially if its used worldwide. Thats why despite the fact that we have decent DEX exchanges (swaps) majority of volume is still on CEXes that does not use blockchain (despite the deposit/withdraw function)

[slapper]

There will be a time when blockchain technologies integrate with stocks. In my country, the stock market is outdated. They use obsolete technology that cant maintain a huge number of users every day. This mean, in a matter of time, sharks can manipulate the market by making a high volume trade so that no one can enter the broker to exit their trade

I believe Wall Street will be the first one to experiment. Right now, rich companies which have R&D must be working with blockchain for future purposes.

[Abiky]

It probably has something to do with Wall Street being set in its ways--and probably people are thinking about it but haven't figured out exactly how to implement such a huge change.  And it would be a huge change IMO.  It's not a small change to implement blockchain tech into the stock market, as it would be something completely new and might change a lot of things.

This question has been brought up before, because I remember writing that I hoped Wall Street would indeed start to operate on a blockchain.  I think the silly 3-day settlement time for stock trades would be done with, and stocks might even be traded 24 hours/day.  It's the latter thing that I was hoping would come about, because it's one of the things I like about crypto exchanges, that they're always open for business.  But stocks?  M-F, 9:30am-4pm; that's it, and IMO it's an antiquated system.

I think the main challenge of Blockchain technology is the lack of regulation. Up to this date, governments haven't been able to properly regulate the industry in its entirety. I guess that's why stock exchanges like the NASDAQ and the S&P 500 haven't switched to the Blockchain yet. We're going to have to wait a little longer before the technology matures for mainstream use.

Once the stock market adopts Blockchain technology, it could run 24/7 just like it's the case with crypto today. Who knows if crypto exchanges become interoperable with stock exchanges after this? What's important is that Blockchain technology becomes integrated into every part of our society. That would increase mainstream adoption for crypto/Blockchain tech by a long shot. Just my thoughts

[BrewMaster]

Performance, cost-efficiency, and security will improve in many ways. This will also enable interoperability between the world of stocks and crypto.

but blockchains do not offer any of that apart from security and security already exists in the database that they are using right now. so basically there is no benefit in using blockchain.
also blockchain technology works best if used in decentralized currencies but it won't be the case with stock market, they WILL centralize it which means that is again no benefit.

[Hydrogen]

Do people have an impression of US stock indexes being on the cutting edge of technology? Or that investors like Warren Buffett are eager to embrace new and emerging technology in the investment sector?

The first change which could happen is US stock market trading shifting to a 24 hour, 7 day week, format similar to crypto exchanges. That could give trading brokerages greater volume of trades. It could make US stocks more attractive to day traders. The average trading day becoming more flexible and less prone to time constraints.

We've seen many stock brokers recently follow the $0 commission trade format popularized by crypto exchanges.

There are essentially a million different things stock indexes and brokers could do to improve and modernize their product. What appears to be lacking is interest, motivation or will to ever make that happen. Its surprising how quickly they shifted to a $0 commission trade format. Making those types of changes, are things that usually occur slowly.

Arguably all of the recent innovation and developments in equities trading are occurring on the broker level. By firms like robinhood. Virtually none of it may ever likely occur on the esablishment end with indexes like NASDAQ imo.

[odolvlobo]

Now that Blockchain technology is extremely popular, it should only be a matter of time before the stock market adopts it to a full extent. Imagine stock exchanges like the NASDAQ and the S&P 500 making use of Blockchain technology. It would totally revolutionize the stock market. Performance, cost-efficiency, and security will improve in many ways. This will also enable interoperability between the world of stocks and crypto.

"Blockchain" is just a buzzword. Without including any technical details, the use of "blockchain" is just a marketing gimmick, similar to the uses of "AI" and "machine learning".

A block chain is a kind of database. Would anyone ever discuss NASDAQ on a relational database? I'm sure that NASDAQ developers might consider using a block chain (and quickly reject it), but the discussion isn't very relevant to anyone else.