The role of blockchain in modernizing stock markets

Stock markets around the world are where institutions and individuals can buy and sell publicly-traded company shares; “stock exchange” and “stock market” are often used interchangeably. These financial transactions occur on official exchanges and over-the-counter (OTC) sites that are highly regulated and it is estimated that the total value of listed equities globally is $109trillion. The Nasdaq and the New York Stock Exchange (NYSE) are two of the most important stock markets in the US. Indeed, American equities account for over 45% of all equities listed globally.

The role of blockchains

Blockchain’s significance in the modernization of stock market settlements is substantial. Its distributed, secure and transparent ledger technology can potentially speed up and lower the overall cost of stock market settlements. Furthermore, in addition to saving money and boosting openness, doing away with those intermediaries such as clearinghouses and custodian banks is another possibility. The p…