Nasdaq and Citi Treasury and Trade Solutions announced Monday a new integrated payment solution that enables straight through payment processing and automates reconciliation by using a distributed ledger to record and transmit payment instructions.
A number of payment transactions have been concluded including Citi’s automated processing of cross-border payments via a link between the CitiConnect for Blockchain connectivity platform and the Linq Platform powered by the Nasdaq Financial Framework, according to a statement by Nasdaq.
This collaboration has created what Nasdaq called “a pioneering institutional banking solution that tightly integrates blockchain technology with Citi’s global financial network leveraging API technology.”
The partnership between Citi and Nasdaq leverages Chain’s blockchain infrastructure platform and draws on core competencies from industry leaders who are at the forefront of innovation in the global financial sector.
“This new payment capability marks a milestone in the global financial sector and represents an important moment in the commercial application of blockchain technology,” said Adena Friedman, CEO, Nasdaq.
“Through this effective integration of blockchain technology and global financial systems, we can realize greater operational transparency and ease of reconciliation, which can have profound implications for outdated administrative functions in the capital markets.”
Emerging technologies like Distributed Ledger Technology are driving digitization and enabling new platforms and blockchain ecosystems that can provide real-time digital solutions. For example, this integration can allow businesses such as Nasdaq Private Market to address the challenges of liquidity in private securities by streamlining payment transactions between multiple parties.