Nasdaq, Citi partnership expands blockchain potential

US exchanges operator Nasdaq and Citi Treasury and Trade Solutions are uniting on an integrated payment solution that enables straight through payment (STP) processing and automates reconciliation by using a distributed ledger to record and transmit payment instructions.

Several 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. The collaboration has created “a pioneering institutional banking solution that tightly integrates blockchain technology with Citi’s global financial network leveraging application programming interface (API) technology.”

Citi adds that the partnership 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. Emerging technologies such as distributed ledger technology (DLT) are driving digitisation and enabling new platforms and blockchain ecosystems that can provide real-time digital solutions. For example, the 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.

Among key benefits being promoted under the integration:
• A seamless end-to-end transactional process for private company securities
• Direct access to global payments from Nasdaq’s Linq platform using CitiConnect for Blockchain and WorldLink Payment Services, Citi’s cross border, multicurrency payments service.
• Increased operational efficiency and ease of reconciliation with real-time visibility of payment transactional activity on the blockchain ledger.