Chain Issues Investor Shares on Nasdaq Blockchain Platform

Blockchain startup Chain has issued shares to a private investor using Nasdaq’s recently launched private markets blockchain solution, Linq.

In statements, Nasdaq called Chain the first company to complete and document a private securities transaction with its Linq technology, a development the company and CEO Bob Greifeld termed a "major advance" for the blockchain industry.

For the transaction, Chain used the Linq platform to issue a record of ownership in the company to its new investor, while benefiting from what Nasdaq said was a reduced settlement time. No details were provided on the size of the investment or whether this funding was part of the company’s recent $30m Series A or a separate fundraising.

First announced in May and unveiled in October, Nasdaq's Linq proof-of-concept uses blockchain tech to manage the issuance of shares in pre-IPO companies. ChangeTip, Chain, Peernova, Synack, Tango and Vera are serving as the initial test group for the offering.

Nasdaq used the announcement to further discuss the big-picture implications it believes the blockchain could bring to financial services as the technology matures.

Greifeld stated:

"Through this initial application of blockchain technology, we begin a process that could revolutionize the core of capital markets infrastructure systems. The implications for settlement and outdated administrative functions are profound."

Nasdaq is, however, one of a number of players seeking to launch blockchain products aimed at the private equities market.

For example, New York-based Symbiont issued its first "smart security" on the blockchain in August, while Overstock released a "cryptobond" on its tØ platform in June.

Investment image via Shutterstock