Delaware transforms corporate finance through its Blockchain Initiative
The State of Delaware, launched in 2016 the Delaware Blockchain Initiative (DBI), headed by Andrea Tinianow. DBI teamed up with Symbiont, a prominent blockchain platform, to introduce various services on the blockchain, such as the automation of the filing of legal documents, and the issuing and trading corporate securities. Furthermore, Delaware Governor John Carney Jr. signed in July 2017 a bill that enabled companies to legally use blockchain to issue securities and maintain corporate records.
DBI was able to introduce the distributed ledger technology into the Delaware Public Archives, whereby new “smart records” technology automates compliance with laws pertaining to retention and destruction of archival documents. Furthermore, the initiative aims to integrate in 2018 “smart UCC” filings, given that the filing of legal forms under the current system is slow, paper-based and susceptible to errors. A distributed ledger technology would automate the filing process, reduce the costs, decrease the occurrence of errors and increase the speed of searching UCC records.
By doing this, DBI is placing the registration of shares on a distributed ledger. This allows investors and issuers to interact directly and it clarifies property rights. It also ensures transparency and accuracy of proxy voting, of dividends and other corporate actions, as well as of securities lending records.
By integrating such a change into the infrastructure of corporate finance, the State of Delaware affirmed its leadership position in corporate registry services, which now provide true value for businesses.