Nasdaq’s Proof-of-Concept Blockchain to Resolve Concerning Margin Calls Issues

According to a report made available Tuesday, June 19, Nasdaq has successfully verified a Proof-of-Concept blockchain solution that provides securities solutions. This effort is believed to be the coming together of several financial firms including ABN AMRO Clearing, EuroCCP and Euroclear. Based on the claims made, their combined values are what got them together in the first place.

What will this newly developed blockchain platform comprise of? The goal is to address ongoing issues of Central Counterparties (CCPs), namely, the difficulties tied to managing and handling margin calls.

A margin call is when a broker calls onto investors to deposit more cash or securities as a way to make up for any losses made or for maintenance purposes. The investor in this situation will either, have to put in more money, or the broker will get rid of existing assets on hand.

This, even to EuroCCP’s CEO, Diana Chan is inefficient, as she believes that the traditional system at hand does not underline so much on counterparty risk protection for equity, which she describes as “not well-served”.

Based on the reporting, Nasdaq’s choice of PoC has been proven to be efficient as it,

“demonstrated that a shared, resilient network can be built between collateral givers, collateral takers and intermediaries.”

Furthermore, it allows those involved to,

“handle the margin call, the securities collateral delivery and the return process within minutes.”

Global Head of Treasury at ABN AMRO Clearing, Coen van Walbeek strongly supports the PoC, to which he suggested it as “a breakthrough for the CCP model”, along with a rep from Nasdaq quoting the blockchain-based platform as an “excellent example”, of what the tech can do and how it can “transform markets everywhere”.

Nasdaq’s CEO, Adena Friedman has previously been impressed and also continues to, with the blockchain technology, despite the current issues it faces like scalability. However, Friedman, since this comment made, has been rooting for the tech, perceiving it as one “that could be quire disruptive”.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,478FansLike
2,795FollowersFollow
4,200FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Market Wrap: Bitcoin Never Going to Zero, Philanthropist Giving Away Money to Buy BTC

This week, the price of bitcoin moved, although it continues to trade in a tight range and is still hovering around $9,200 on low...

Bearish Catalysts for Bitcoin Price

This week, Bitcoin is ranging between $9,050 and $9,500. Currently, we are trading just above $9,200 after yesterday, Bitcoin’s price dropped $150 in seconds...

The Good and Bad of the Crypto Going Public

This week, big news came in the form of crypto businesses that are planning to go public either later this year or next year. Crypto...

US Secret Service Has Modernized Its Role in Tackling Financial Crimes in The Crypto Era

The role of the US Secret Service, whose purpose extends from protecting the US President Trump to protecting the US financial systems, has...

Bitcoin is in a ‘Consolidation Zone,' We’ll Move to $14,000 Once BTC Gets Above $10k: Mike Novogratz

Bitcoin is about system change, said Mike Novogratz, CEO of Galaxy Digital, in his latest interview with Barron’s Carleton English. While talking about the catalysts...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today