Banking giant Citi and technology stock exchange Nasdaq announced a new digital payment solution that provides straight-through processing and automatic payments reconciliation by leveraging blockchain technology to record and transfer payment instructions.
The collaboration between the two New York-based financial services companies has culminated in a pioneering banking solution that integrates distributed ledger technology with Citi’s global financial network’s API technology. The new payment solution has been developed by leveraging Chain’s enterprise blockchain infrastructure to process payments between the CitiConnect® for Blockchain connectivity platform and Nasdaq’s Linq platform.
Chain’s CEO, Adam Ludwin, commented on Chain’s involvement in the project:
“Chain is delighted that our technology is supporting this industry-leading network. Through this effort, we have seen firsthand that Citi and Nasdaq are pioneers, successfully leveraging breakthrough technology in order to enable world-class solutions for their clients.”
Chain Inc. is a San Francisco-based blockchain startup that develops distributed ledger solutions for the financial services industry. Both Citi Ventures and Nasdaq are shareholders in Chain after having invested in the startups series B funding rounds together with other leading financial institutions in 2014.
Blockchain technology is becoming a driving force in the digitization of systems and processes in the financial services industry as it allows for the secure recording, storing and transferring of data in real-time. An example of this would be the integration of the new payment solution enabling the Nasdaq Private Market to better deal with the liquidity of private securities trading by making payment transaction between parties more efficient. The payment solution integration offers smooth end-to-end transactions as well as direct access to global payments from Nasdaq’s Linq platform using CitiConnect® for Blockchain and WorldLink® Payment Services. It also offers improved operational efficiency and ease of reconciliation due to real-time visibility of transaction on the distributed ledger.
Citi’s Head of Treasury and Trade Solution Group, Naveed Sultan, said in a press release: “CitiConnect® for Blockchain provides a crucial bridge between blockchain platforms and Citi’s global financial network. Our partnership with Nasdaq showcases Citi’s client-centric approach to innovation and is an example of how we actively engage with our clients to co-create innovative, leading and differentiated solutions for the global market.”
Nasdaq CEO Adena Friedman commented: “This new payment capability marks a milestone in the global financial sector and represents an important moment in the commercial application of blockchain technology. […] We are excited about this accomplishment in collaboration with our partners, Citi and Chain, and are looking forward to continuing our work together to scale this offering.”