The NASDAQ stock exchange made news recently with the announcement that it is running a new initiative to use bitcoin technology for the trading of shares of pre-IPO companies.
This is kind of a big deal. And I say that with some authority because I’m involved elbow deep in a project that will accomplish exactly the same thing, and then some. Specifically, Overstock.com’s Medici Initiative that takes up so much of my life right now is building a platform for trading both private (pre-IPO) and public (post-IPO) company shares.
I was impressed when BitcoinMagazine.com recognized the similarities between NASDAQ’s project — being called NASDAQ Private Market — and Overstock.com’s Medici Project. I chatted with BitcoinMagazine.com’s Christie Harkin and she further impressed me with her quick grasp of the salient issues bearing upon the idea of blockchain trading.
In the resulting article, I make the case that while technically a competitor, the NASDAQ Private Market is very good news for Medici, since its application adds substantial weight and legitimacy to what we’re doing, not to mention the benefit to be gained from NASDAQ’s relationships with the regulators, which is likely a bit less complicated than is Overstock.com’s (our CEO having been a vocal critic of the SEC’s past approach to dealing with the same market abuses that inspired Medici).
Bottom line is: NASDAQ’s decision to enter this new market is a very positive development for Medici and the emergence of bitcoin 2.0 in general.