Citigroup (C - Get Report) and Nasdaq (NDAQ - Get Report) said today that the two are working with technology startup Chain, and have partnered to link Citi's business payment services to Nasdaq's blockchain platform, the Wall Street Journal reports.

Nasdaq's blockchain platform is used for activities including the buying and selling of shares of private companies.

For blockchain, the move signifies a major step in its development. Blockchain is the peer-to-peer networking technology first developed to transfer ownership of the virtual currency bitcoin between people, the Journal noted.

The deal announced today will connect blockchain to one of the most established bank money transfer systems, and provides larger banks a way to earn fees assisting new networks facilitate business payments if the traditional settlement or invoice systems are disrupted.

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