The Stock Exchange of Hong Kong (SEHK) is looking to blockchain as it begins work on a next-generation transaction settlement system.
The disclosure came during comments given by SEHK chief executive Charles Li, who spoke during a media luncheon earlier today.
In response to a question about market infrastructure changes, Li said that, in addition to retooling its trading platforms, SEHK is weighing options for upgrading its post-trade systems as well. He mapped out a three-to-four year roadmap during which the exchange would seek to both cut costs and reduce risk across the its operations.
As part of that process, SEHK is considering blockchain for possible use.
Li explained to luncheon attendees:
SEHK has been holding exploratory conversations with exchange operator Nasdaq since as early as October, according to the South China Morning Post.
Image Credit: ymgerman / Shutterstock, Inc.
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.