Fintech Startup, Chain, created Blockchain code for all, now Partnering with Visa

Stephen L Kanaval  |

The blockchain is a decentralized online ledger that records transactions. Some of the largest banks in the world are investing large sums of money into blockchain technology and applications. UBS has a blockchain research laboratory in London. UBS is currently working with Barclays and BNP Paribas on Ethereum, a blockchain-backed virtual machine for user services. Citigroup has three labs and has created three blockchains and currency of their own called Citicoin. While banks like Santander, Bank of England, and the Deutsche Bank have all formally expressed interest in using blockchain to simplify banking. In addition, the Nasdaq OMX uses blockchain to oversee the safe exchange of private stock, and online juggernaut Overstock.com has built a system that will give companies the power to borrow securities via blockchain.

The technology of blockchain is valuable because it allows a secure and reliable exchange of money and assets. A wire can take three to five business days and come with hosts of penalties; whereas, blockchain happens in real time. A recent research report by Tabb Group said that blockchain-powered systems are only a matter of when, not if. Chain is a technology company that we are watching here at Equities that deploys and operates blockchain networks.

Chain is a blockchain startup and the author of the Chain Protocol, the open source protocol that powers the Chain Core blockchain platform. The company was founded in 2014 and has strategic partners like Capital One, Citigroup, Nasdaq and Visa. As a matter of fact, Chain recently created a global payment network with Visa called the Visa B2B Connect. “This is an exciting milestone in our partnership with Visa,” said Adam Ludwin, chief executive officer of Chain in the company press release. “We are privileged to support Visa’s efforts to enhance the service it provides to its clients and shape the future of international commerce with this blockchain-enabled innovation – streamlining business payments among financial institutions and their customers around the world.”

The company has raised $40 million to date. Chain is presenting a midway space for companies to move assets under governance by a controlling federation with standards and privacy. The Chain Core is a software that enables blockchain asset transfer. The company has an enterprise edition and a developer edition, which is free. Many financial institutions and companies are using Chain and Chain Core to transfer assets internationally with speed, track assets between managers, track assets across divisions, offer more advanced mobile banking, issue central bank currency digitally to improve payment systems in a country, created automated insurance contracts and much more. Chain Protocol is designed for:

  • Issued financial assets
  • Permissioned network access
  • High transaction volumes
  • Confidentiality of transaction data
  • Network upgradability
  • Programmable transactions

Chain’s board of directors boasts a former CEO of American Express and a Founding Executive of PayPal. The company is based in San Francisco and has won an award for “Best Fintech Innovation” for their open source platform. The company works closely with industry partners and understands what needs to happen for a transformation of financial services. I mean this is the company that prepared a primer for Federal Reserve Chair Janet Yellen on the benefits of using blockchain. I think Chain is ready and happy to help overhaul financial services as we know it, but, will we be ready to follow?

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

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