ASX Sets Date for Decision on Blockchain Transition

ASX says it intends to decide on whether it will migrate to a blockchain-based settlement system by the end of 2017.

AccessTimeIconSep 28, 2016 at 12:40 p.m. UTC
Updated Sep 11, 2021 at 12:31 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Australian Securities Exchange (ASX) says it intends to decide on whether it will migrate to a blockchain-based settlement system by the end of 2017.

The comments stem from a new address to shareholders from ASX chairman Rick Holliday-Smith today, in which he provided an update on its bid to evaluate whether the technology will eventually underlie its post-trade processes.

In statements, Holliday-Smith provided an update on the work, which it revealed had finished the prototyping stage in mid-August.

Holliday-Smith said:

"We have successfully completed the distributed ledger prototyping stage and have moved on to building an industrial-strength solution that could be used to replace CHESS – our existing cash equities clearing, settlement and sub-registry system."

A decision on whether to move forward with the blockchain system, Holliday-Smith said, could be made as soon as the second half of 2017.

Elsewhere, he voiced his belief that blockchain and distributed ledgers stand to significantly improve settlement processes. ASX first announced its intent to explore the technology in early 2016, at which time it unveiled that it would work with the New York-based startup Digital Asset Holdings (DAH) on the initiative.

As previously reported, ASX owns 8.5% of DAH, having invested upwards of $20m in the project to date.

Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.