Nasdaq Stock Market, the second-largest exchange in the world, has successfully completed a blockchain technology test to run e-voting on its Estonian exchange.
The technology allows the shareholders of companies listed on Nasdaq’s Tallinn Stock Exchange to vote in shareholder meetings using e-voting through Estonia’s e-residency platform.
Now the stock market is assessing whether to implement the system.
According to Reuters, blockchain is a distributed and immutable record of transactions that is maintained by a network of computers on the internet, without approval from a central authority. Nasdaq has been one of the earliest and most vocal supporters of the technology in the exchange industry and already uses the technology to power its market for shares of private companies.
“While e-voting technology may not be the next killer app, it is very much a practical, necessary, solution that has many potential applications around the world,” Nasdaq said. “For example, we envision the end-users potentially being listed and non-listed companies, investment funds, trade industry associations, NGOs, but also investors and custodians all over the world.”
Cover image by Siiri Lind.