US exchanges’ adoption of bitcoin
technology to facilitate and track trades could enhance speed
and transparency in the securities market.
The use of the blockchain software, which is
essentially a ledger of trades, would enable buyers, sellers
and exchanges to clearly mark the ownership path of a
Regulators have not offered any guidance, but the
use of this technology could enable financial institutions and
their monitors to see irregularities and allow them to close
the gap on market arbitrage.
"From a regulatory perspective I think the
blockchain should be viewed as a positive," said Cleary Gottlieb Steen & Hamilton partner
Michael Krimminger. "If you have transparency at the
origination of the transaction, blockchain offers an easy
The Nasdaq – the largest exchange for technology
companies in the US – launched a pilot programme in
July to test the use of the...