More than half of all U.S. publicly-traded companies – and two-thirds of Fortune 500 firms – are incorporated in Delaware because of its business-friendly laws and well-established corporate legal precedence.

The state, which doesn’t have a sales tax, gets nearly one-third of its revenue from franchise taxes on more than a million corporate entities, accounting for $1.3 billion of its $4.2 billion general coffer. Making incorporating in the state more attractive is seen as a money maker and competitive advantage against other states.

To that end, Delaware in October plans to launch a proof-of-concept for a blockchain-based business filing system that will allow corporations to take advantage of smart contract technology to automatically track stocks and collateral assets in real time; being able to do so will give lenders and borrowers a more efficient and accurate record with which to transact business and meet state and federal regulations.

“There are so many things that could potentially add value and we just want to dive into it a bit deeper and get a better understanding of how it would actually work in a real demo and then potentially take steps forward,” said Chris Knight, Delaware’s deputy secretary of state.



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