Nasdaq is Helping Build a Blockchain Market for Ad Contracts

Exchange operator Nasdaq is helping to launch a new blockchain-based market for advertising contracts.

The New York Interactive Advertising Exchange, or NYIAX, has positioned the forthcoming exchange release as a transparent means for buyers and sellers to trade digital media, the company said in an announcement released today. Nasdaq is providing the technology that will power the exchange.

Though it didn't get into specifics, the firm indicated that it will utilize proprietary technology, deployed in the cloud, using blockchain as the "core ledger" for transactions in the market. And while no full launch date has been revealed, NYIAX said that it aims to complete a pilot program by late 2017.

The goal, the company said, is to seek to streamline the $32bn market for media advertising by securitizing advertising contracts.

Richard Bush, NYIAX's chief product and technology officer, said in a statement:

"Trading, a vital part of other market sectors, has now come to media. With the ability to trade guaranteed media contracts, advertisers and publishers can now be efficient and rid themselves of unnecessary costs and risks. NYIAX is leveraging our Nasdaq Financial Framework architecture, which draws on cutting-edge technology, including the integration of blockchain technology as our core ledger, as well as cloud-enabled trading and clearing capabilities."

The launch comes months after Nasdaq began offering blockchain-based services to its exchange clients. It's also been testing blockchain-based voting in Estonia, the early results of which Nasdaq has said seem promising from an operational standpoint. In 2015, Nasdaq launched Linq, a private market powered by the tech.

The exchange operator is also one of a number of firms worldwide to seek patents related to blockchain. Last year, Nasdaq filed a patent application for "systems and methods of blockchain transaction recordation" as a means to streamline the post-trade archiving process.

Image Credit: Sean Pavone / Shutterstock.com

Correction: This article has been corrected to reflect that Nasdaq is serving as a technology partner to NYIAX, which is launching a new exchange. Richard Bush's title has also been corrected. CoinDesk regrets the error.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Garrett Keirns

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.