Australian Securities Exchange confirms blockchain implementation in 2021

The Australian Securities Exchange (ASX) is collaborating with fintech company Digital Asset and VMWare to complete the digitization of assets and migrate its existing trading platform onto distributed ledger technology by 2021.

According to the official announcement from ASX, on 8/27, they signed a Memorandum of Understanding (MOU) with two other companies to explore replacing their existing information exchange system, CHESS, with a new platform using Distributed Ledger Technology (DLT).

An MOU is a memorandum signed by two or more parties to record bilateral or multilateral intentions between different countries, governments, or organizations. While not legally binding, it signifies a certain level of cooperation.

This MOU also includes support for the open-source smart contract programming language DAML. DAML, partially owned by ASX, is used to build decentralized applications (DApps).

Peter Hiom, Deputy CEO of ASX, mentioned in an interview:

This MOU is an essential milestone for ASX in expanding our product or service offerings in Australia and New Zealand.

The plan to construct a new platform was proposed by ASX as early as 2015 and has been slowly implemented. Currently, 30% to 40% of the new platform is available to replace the CHESS system. ASX's current platform handles about 2 trillion Australian dollars in registered stocks and processes 5 billion Australian dollars daily, which are significant figures.

Peter Hiom further added:

This partnership also demonstrates our firm belief in the potential of distributed ledger technology. We see this as a key focus that will change the future financial landscape.

Further Reading

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