Delaware will soon become the first state to allow companies to use blockchain technology in financial transactions.
A law set to take effect August 1 will allow companies incorporated in the state to use blockchain technology for financial transactions, like stock trading.
Deputy Secretary of State Kris Knight said banks especially like this technology.
“Corporations and organizations are always looking for ways to be more efficient, decrease costs and get information to the important stakeholders faster. And we believe this technology allows them to do so.”
The most common use of blockchain technology is distributed ledgers. These create a shared record of transactions among multiple parties, providing a single master copy.
“It will, one, allow for you to have realtime information updates as well as for allowing for you to have correct information because it’s all existing on the blockchain so there’s no duplicate information that might be off for some reason,” Knight said.
The tech and finance world are betting blockchain technology will be the way of the future. But this tech exists in an area of regulatory uncertainty.
That’s why Gov. John Carney signed a law this month that allows any company incorporated here to use blockchain tech.
He and lawmakers are hoping that will give the state a competitive edge when attracting businesses.
When the law goes into effect August 1, Delaware will be the first state with the regulatory framework for companies to experiment with this technology as they please.
Former Gov. Jack Markell spearheaded the state’s use of this technology with the creation of the Delaware Blockchain Initiative in May of 2016.