The state of Delaware has passed amendments to state law that make explicit the right to trade stocks on a blockchain, according to multiple sources familiar with the matter. The measures were part of a broader series of amendments that legally recognized any number of records being stored on a blockchain. The bill is expected to become effective in August 2017.
By trading stock on a blockchain or similar distributed ledgers, middlemen who profit along the several steps that currently exist between buyers and sellers of stocks could be cut out of the process, resulting in significantly faster settlement times.
The bill was introduced last year by the previous governor, Jack Markell, following requests made by multiple companies for the legislation – which was already lenient to blockchain stocks – to make explicit the legality of such issuances.