ASX Affirms Blockchain Support Following CEO Departure

ASX remains committed to its plans for potential blockchain integration even after the man who helped lead the project resigned.

Mar 23, 2016 at 4:58 p.m. UTC
Updated Sep 11, 2021 at 12:11 p.m. UTC

The Australian Securities Exchange (ASX) says it remains committed to its plans for potential blockchain integration after the CEO who helped lead the project abruptly resigned.

ASX's acting boss, chairman Rick Holliday-Smith, told Bloomberg that he views distributed ledger technology as a "unique opportunity" for Australia to become a leader in the financial technology space.

"The ASX board is committed to the development of distributed ledger technology," Holliday-Smith wrote in an email to Bloomberg, according to a report today. A letter signed by the chairman, also dated today, revealed that the exchange expects to make a decision regarding blockchain's "suitability" by the middle of next year.

Yesterday, ASX announced in a statement that the company's previous CEO, Elmer Funke Kuppar, had resigned after four-and-a-half years on the job.

News of Funke Kupper’s resignation prompted multiple local reports to speculate that, without the person who had spear-headed the exchange's exploration to move some of its post-trade services to the blockchain, the technology’s role might be reevaluated.

As part of ASX's push into the blockchain industry, the exchange invested $10m for a 5% stake in Digital Asset Holdings in January. In total, Digital Asset eventually raised $60m as part of its bid to build blockchain services for securities settlement

The Australian exchange is part of a larger push by established and startup companies to embrace blockchain as part of post-trade services.

In January 2015, the New York Stock Exchange joined a $75m investment in Coinbase. By December, Nasdaq had issued its first private securities using Linq, a blockchain-based service, and Overstock's tØ platform received permission from the SEC to issue its own stock on the blockchain.

Correction: An earlier version of this article incorrectly reported ASX's investment in Digital Asset terms in Australian dollars.

Brisbane image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Bitcoin Records Eighth Week of Losses, but Sentiment Indicator Suggests Upside

Sentiment indicators reached “rock bottom” on Monday amid a prominent fund manager calling for a retest of 2019’s price levels.

Sentiment indicators reached “rock bottom” on Monday amid a prominent fund manager calling for a retest of 2019’s price levels.

CoinDesk - Unknown
2
CoinDesk - Unknown
Coinbase Enters Fortune 500 List of Biggest US Companies

The first crypto company to join the list recorded revenue of over $7.8 billion in fiscal 2021 and placed 437th.

The first crypto company to join the list recorded revenue of over $7.8 billion in fiscal 2021 and placed 437th.

CoinDesk - Unknown
3
CoinDesk - Unknown
Climate Company Flowcarbon Raises $70M Through A16z-Led Round, Sale of Carbon-Backed Token

Flowcarbon aims to drive investment in projects that remove carbon from the atmosphere by creating a protocol that tokenizes carbon credits.

Flowcarbon aims to drive investment in projects that remove carbon from the atmosphere by creating a protocol that tokenizes carbon credits.

CoinDesk - Unknown
4
CoinDesk - Unknown
ECB Warns That Crypto Risks Could Spill Over Into Wider Economy

Given the increasing risks of crypto, it is important to bring it into the regulatory perimeter as a matter of urgency, the European Central Bank said in a report.

Given the increasing risks of crypto, it is important to bring it into the regulatory perimeter as a matter of urgency, the European Central Bank said in a report.

CoinDesk - Unknown