A stock exchange in Australia is developing a private equity market solution using blockchain technology.
As reported by the Sydney Morning Herald, the Sydney Stock Exchange (SSX) will initially look to facilitate the trade of private stocks, but will eventually open the system up to publicly traded stocks as well. The project brings to mind Linq, the blockchain project developed by securities exchange operator Nasdaq in partnership with blockchain startup Chain.
Loretta Joseph, the lead SSX consultant working on the project, told the Morning Herald:
According to the report, the project has been in development for year, but recent moves by the government encouraged SSX to push ahead on the initiative. Statements from the exchange’s leadership indicate that it intends to both use the solution internally as well as market it to other exchanges.
By planning to integrate blockchain tech into its systems, SSX becomes the second notable securities exchange in Australia to seek to adopt the technology.
The Australian Securities Exchange (ASX) has been working on its own solution in partnership with New York-based startup Digital Asset Holdings. The exchange was also an investor in Digital Asset’s recent $60m funding round.
The move comes during a formative time for the technology in Australia. Earlier this year, the government gave its effective stamp of approval through public statements on such projects, stating the intention to develop new legal frameworks for blockchains.
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