NEW YORK (Reuters) - Exchange group Nasdaq Inc and Nordic financial services group SEB have teamed up to test a blockchain-based mutual fund trading platform for the Swedish market in an effort to simplify and make the process faster.
The platform would enable fund companies, distributors and other market participants to record all transactions and changes to mutual trades in real time on a shared digital ledger, Nasdaq and SEB said on Wednesday.
Financial institutions have been ramping up their investments in the nascent technology in hopes that it can help reduce the complexity and cost of some of their burdensome back office processes.
Nasdaq and SEB have committed to continue development on their joint effort with the aim of building and testing a working prototype, they said in a joint statement.
While financial institutions continue to test and invest the technology, critics have warned that its potential may be over-hyped, suggesting that it may take years before it can be implemented at scale.