Hong Kong Stock Exchange Looks to ASX for Blockchain Equity Settlement

The Hong Kong Stock Exchange is looking to follow its Australian counterpart in developing a blockchain settlement system.

AccessTimeIconMar 20, 2018 at 11:30 a.m. UTC
Updated Sep 13, 2021 at 7:42 a.m. UTC

The Hong Kong Stock Exchange (HKEX) is looking to follow its Australian counterpart in developing a blockchain settlement system.

According to the Financial Times, Charles Li, head of the HKEX, said on Tuesday that the company is currently in dialogue with the Australian Securities Exchange (ASX) to learn from its experience in settling transactions over a blockchain system.

The plan, according to Li, would ultimately be to utilize a blockchain platform to settle stock borrowing and lending, as well as over-the-counter trades, at a reduced cost compared with traditional methods.

While the stock exchange has previously announced an initiative in developing a blockchain-based private market to finance smaller enterprises, Li said technology vendors were not able to lend sufficient support and the HKEX is not interested in taking the effort in-house.

That said, Li still hopes to beef up the exchange's blockchain efforts by following the technological progress and vendor relationships seen by the ASX.

"Let’s use this cheap technology to do something that doesn’t affect the central order book," he was quoted as saying.

As reported by CoinDesk, the ASX announced last December that, using technology developed by blockchain startup Digital Asset, it has set to become the first stock exchange to shift one of its main services to a blockchain-based system.

Stock index image via Shutterstock


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.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC