The blockchain technology race has just opened up a whole new front, this time with a potentially significant joint project in the fintech sector. New York-based exchange operator Nasdaq is integrating its Financial Framework with Microsoft Azure Blockchain. The world’s second-largest stock platform continues to actively embrace the capabilities of the technology that underpins crypto assets.
The current Microsoft-Nasdaq partnership would help different technologies work together for Nasdaq customers. For instance, it will make it easier to match buyers and sellers; and manage the delivery, payment and settlement of transactions, both companies explained.
According to the information released in the recent announcement, Microsoft will integrate its Azure blockchain service with NFF (Nasdaq Financial Framework), a technology which provides software for trading infrastructure and operations outsourcing, and fulfills Nasdaq’s risk and surveillance technology offering. Additionally it helps NFF customers deploy various blockchains through one common interface, and helps in promoting blockchain development.
Join the mega-trend
The Nasdaq-Microsoft collaboration opens the door for Blockchain technology to manage the delivery, payment, and settlement of transactions that may reside on multiple blockchains with different payment mechanisms.
Senior Vice President of Enterprise Architecture at Nasdaq, Tom Fay, said that the partnership with Microsoft removes some of the complexities of integrating blockchain technology into existing infrastructures. He added:
“Our NFF integration with their blockchain services provides a layer of abstraction, making our offering ledger-agnostic, secure, highly scalable, and ultimately helps us continue to explore a much broader range of customer use cases for blockchain.”
Set the fear aside
Nasdaq Financial Framework hopes to enable clients to easily experiment with new applications such as smart contracts, without them having to build the infrastructure from scratch or require an in-depth knowledge of cryptocurrency.
Microsoft Azure wants to support the expeditiously growing number of distributed ledger technologies that address specific business and technical requirements for security, performance, and operational processes.
When Azure’s service was first launched, its native implementation was with Ethereum, facilitated by Brooklyn-based startup ConsenSys. Over the last few years, Microsoft has shared that a number of financial institutions have signed up to the Ethereum BaaS.
It is quite impressive that the second-largest exchange across the globe has quietly been building bridges across blockchain and the mainstream financial markets. Nasdaq is currently supporting existing crypto exchanges which lends more credence to that notion. Furthermore, the Nasdaq-powered exchange, DX Exchange, went on a marketing blitz and got 500,000 registered users on board.
Earlier in July, Nasdaq organised a meeting in Chicago where half a dozen cryptocurrency and mainstream companies discussed ‘how to encourage the cryptocurrency industry that could improve its image and validate its potential role in global markets.’
Nasdaq has associated with cryptocurrency exchange Gemini, which attended the meeting with an objective to tap its SMARTS Market Surveillance, an industry benchmark technology used across Wall Street, to add more security and identify criminal trading behavior, to its venue. It also partnered with San Diego based ETF firm, Reality Shares, to launch two blockchain-related funds.
Nasdaq and Its Proceedings in the Blockchain World
Nasdaq recently revealed a new blockchain patent, which makes reference to “an information computer system […] provided for securely releasing time-sensitive information to recipients via a blockchain.” With the patent, the company is reportedly looking to ease releasing timely information to the media while keeping it secure and airtight from a legal standpoint.
Earlier this week, in an interview with Cointelegraph, Nasdaq’s Head of Alternative Data, Bill Dague, said that it is exploring appending crypto datasets to its market analytics tool. Although, whether or not the exchange will launch a crypto-related product, yet remains to be seen.
In August, Azure introduced a proof-of-authority (PoA) algorithm on its Ethereum blockchain product. A PoA algorithm is based on the principle of approved identities or validators on a blockchain, and does not require competition when completing the transactions.
The recent Ethereum product on Azure is equipped with a number of features to ensure its correct functioning and security, such as an identity leasing system, Parity’s web-assembly support, Azure Monitor, and a Governance Decentralized Application (DApp).