Blockchain technology is filling more and more use case needs all over the world these days. Up until a few years ago, people never expected this technology to even remotely succeed, despite its apparent transparency and global availability. But in this and age, institutions like Nasdaq are looking to employ blockchain technology for proxy voting on companies listed on the Tallinn Stock Exchange.
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The Role of Blockchain Technology According To Nasdaq
Many people see the blockchain as a tool for transactions and transferring value from one person to the next, regardless of their location in the world. But in truth, blockchain technology can be used for various other purposes that can still affect the financial world, without relying on value transfers per se.
Nasdaq has been one of the first major financial institutions to openly show an interest in using blockchain technology for different purposes in the financial industry. One of those use cases could change proxy voting on companies listed on the Tallinn Stock Exchange, which is owned by Nasdaq.
This decision does not come as a major surprise, considering Estonia has been keen on embracing the blockchain as well. In recent month, the e-Residency platform has started to take root, which acts as a digital authentication service for various purposes in the country. What makes this platform even more interesting is how anyone in the world can use it, regardless of whether they are an Estonian resident or not.
Nasdaq President Hans-Ole Jochumsen stated:
“Estonia’s robust information society and forward thinking coupled with the agility its size affords, creates a unique opportunity to premiere the e-voting pilot in Estonia. We’re excited to see the development of this project over the coming months, and look forward to working closely with the government of Estonia to set a transformative example of the future of governance.”
Moreover, this is not the first official distributed ledger project from Nasdaq either. Late last year, the company issued private securities between investors and companies through its very own blockchain platform, called Nasdaq Linq. This project was deemed to be a major success, which is part of the reason Nasdaq deems this to be a good time to launch a secondary project.
At the time of publication, there was no official launch date for this new proxy voting blockchain project yet. What we do know is that Nasdaq plans to launch the platform at some point this year, E-voting can be made far more efficient by using the blockchain, and it will empower shareholders as well.
Source: Finextra
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