Nasdaq and Citi are investing millions of dollars in a startup to introduce blockchain in financial markets
According to reports media, Nasdaq Inc. and Citigroup Inc. included in the number of companies that will invest $ 20 million in the New York startup Symbiont.io. The project team deals with the introduction of blockchain technology in the field of investment.
According to analysts at Bloomberg, the support of a startup by the largest exchange and well-known financial company speaks of the vanishing belief of large Wall Street players in cryptocurrency. With an understanding of the prospects of the blockchain itself is preserved.
Why in finance blockchain
According to Mike Smith, the CEO of Symbiont, at the moment a “more realistic phase begins, when people start thinking about areas of technology to be applied” and now people “understand that this is not a panacea for solving all possible problems”.
Symbiont is developing its own blockchain and smart contract platform called Assembly - these tools are aimed at financial institutions. Companies can use them for data exchange and verification.
The terms of transactions are programmed using smart contracts, and the blockchain technology is used to speed up settlements. For example, the technology is used when issuing syndicated loans and when trading in mortgage bonds.
Among other things, the startup has entered into a partnership agreement with a large fund Vanguard Group - in the framework of cooperation it is planned to introduce the blockchain into the calculations of index data for mutual funds.
Among other things, Symbiont uses borrowed money for development in the areas of data management, the mortgage market, private equity and the further development of products for the syndicated loan niche.
Nasdaq exchanges plans to use the Assembly platform for transactions of new and existing customers, as well as asset tokenization, that is, the translation of operations with real resources like oil or precious metals into digital form.
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