The Australian Securities Exchange (ASX) is teaming up with fintech firm Digital Asset and VMWare to move its current exchange platform onto distributed ledger technology.
Announced today, ASX and Digital Asset have signed a three-party memorandum of understanding (MOU) to build a replacement platform for the existing Clearing House Electronic Subregister System (CHESS) onto DLT. MOUs are usually non-binding documents that point to a company's intention
Begun in 2015, ASX plans on the new DLT-platform to be up and running by Spring 2021. As of now, 30 to 40 percent of the new platform is available to replace CHESS.
Speaking with ZDNet, ASX deputy CEO Peter Hiom said ASX said the MOU will help it expand both product offerings and service locations across Australia and New Zealand:
ASX is also using Digital Asset’s open-source, blockchain-focused language DAML for the project.
ASX’s current platform handles some AU $2 trillion in registered equities along with AU $5 billion processed per day.
Australian flag image via Shutterstock
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.