Leading the world: blockchain technology is used in Australia’s largest stock exchange

nBankruptcy commentary: Yesterday, the Australian Securities Exchange (ASX) announced that it will use blockchain technology to replace its existing clearing and settlement system, becoming the world’s first real blockchain technology using the major exchanges. It is reported that before the announcement, this licensed blockchain developed by Digital Asset Holdings, a New York-based industry startup, has undergone more than two years of actual proof of concept and prototype testing and is fully validated . While much remains to be done, the news is enough to be seen as an important milestone in the development of the blockchain.n
nTranslation: Clovern
ASX confirmed that it will use blockchain technology to replace its existing clearing and settlement system, making it the first major exchange in the world to do so.n
After more than two years of hands-on proof of concept and prototype testing, ASX will be the first major exchange in the world to apply blockchain technology to its core processes – post-trade infrastructure. The licensed blockchain developed by Digital Asset, an industry start-up based in New York, will replace the Exchange’s existing Clearing House Electronic Sub-Registration System (CHESS).n
Before ASX announced the decision today, the “well-built business-oriented” blockchain software has gone through two years of “extensive usability testing” to meet the anticipated “capabilities, capabilities, security” of Australia’s largest stock exchange And Resilience. ” ASX Vice President Peter Hiom said:n
n”We have conducted more than 80 DLT system demos for over 500 participants and hosted more than 60 CHESS alternative seminars for more than 100 organizations from the global financial services industry.” “n
nIn addition, the exchange operator revealed that blockchain successfully passed two independent security audits by third-party auditors.n
Dominic Stevens, Managing Director and CEO of ASX, said:n
n”ASX has carefully scrutinized the technology for distributed ledger for nearly two years now and after that we believe using DLT instead of CHESS will enable our customers to develop new services and reduce costs and will put Australia in financial The frontiers of market innovation. While we have a lot of work to do, the announcement today is an important milestone in this journey. “n
nAt the end of 2015, Elke Funke Kupper, then ASX managing director, said blockchain technology was a “once in a-20-year” opportunity to embrace digitization to curb the cost, timeline and complexity of the existing CHESS platform. As of January 2016, ASX paid A $ 14.9 million to buy a 5% stake in blockchain startup Digital Asset Holdings, which will subsequently continue to develop the blockchain solution ASX is using.n
It is reported that the plan for implementing blockchain technology encountered some resistance during the probationary phase for shareholders who wanted to maintain high margins and dividend payout ratios. Because ASX has become the world’s most profitable major stock exchange in the world, with a profit margin of 77% and a forecast of exceeding 71% of the Hong Kong stock exchange.n
However, ASX announces that using this decentralized technology is an important support for the blockchain, which will make transactions cheaper, more efficient, faster and without middlemen.n
Blythe Masters, chief executive of digital assets, added:n
n”After a hype surrounding the technology of distributed ledger, the announcement today is the first to demonstrate the potential of this technology to realize its potential, and it makes sense for DA to demonstrate with our client ASX that this technology is not just Will play a role, but also to meet the requirements of the mission-critical financial infrastructure. “n

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