Bitcoin in Australia - Blockchain Technology to Be Used at the Australian Stock Exchange

Blockchain Technology to Be Used at the Australian Stock Exchange

Blockchain technology keeps expanding in a world of constant changes. The Australian Stock Exchange will be the first in the world to adopt this technology. The information was announced by the Australian Securities Exchange (ASX) in a media release on December the 7th. The ASX is one of the top 10 securities exchanges in the world and the largest interest rate derivatives market in Asia. At the moment, there are some few stock exchanges that are moving towards Blockchain, Nasdaq, the London Stock Exchange and the Japan Exchange Group.

Blockchain Revolutionizing the System

The ASX will stop using the Clearing House Electronic System (CHESS) in order to adopt ledger technology, developed by Digital Asset (DA). This will make of the ASX the first securities exchange to be based on Blockchain technology for its daily operations and services.

Blythe Masters, Digital Asset CEO, said:

“After so much hype surrounding distributed ledger technology, today’s announcement delivers the first meaningful proof that the technology can live up to its potential. Together, DA and our client ASX have shown that the technology not only works, but can meet requirements of mission critical financial infrastructure.”

The CHESS was the leading technology when it was introduced in 1990 providing electronic communications, removing the paper share certificate and providing name-on-name register functionality. Blockchain will reduce operational costs, increase the security and provide faster transactions. It is essentially an upgrade of the older CHESS system.

The decision that the ASX took has been planned two years ago and tested in parallel with a stakeholder consultation program. The last step will be to work with the stakeholders until March 2018 in order to receive a feedback and have time to modify what would be necessary. The new system will be released in March and will be operated by ASX on a secure private network where participants must comply with the enforceable obligations.

Dominic Stevens, ASX Managing Director and CEO, said:

“ASX has been carefully examining distributed ledger technology for almost two-and-a-half years, including the last two years with Digital Asset, in order to understand its potential application.”

Image Source: Kryptomoney