7 Dec Australian stock exchange (ASX) announced its intention to implement blockchain technology is the existing system of processing of equity transactions.
ASX in conjunction with the Digital Asset (technology provider) will be the world’s first stock exchange, which uses blockchain technology for their main services. The exchange will implement blockchain technology to replace the current clearing and settlement system, CHESS (Clearing House Electronic Subregister System). The distributed nature of the blockchain is an enhancement that provides the ability to accelerate and enhance security operations and reduces costs in all aspects.
ASX has taken this decision in partnership with Digital Asset consulting company that provides support to financial institutions for technology implementation of a distributed registry.
For the past two years, the stock exchange of Australia conducted research and testing the technology for a distributed registry that includes two independent third-party verification of the security solutions offered by Digital Asset. ASX the transition to the new system scheduled for the end of March 2018.
This is an important point for the adoption of blockchain-technologies in which Australia is headed the way of the traditional financial sector to understanding, testing and implementation of technologies of the distributed registry.
CEO, Digital Asset Blythe masters said:
“DA and our client ASX together proved that the technology not only works but also is able to meet the requirements of critical financial infrastructure.”
Now, the main stock exchange of Australia joins a relatively short list of world stock exchanges, which take bold and concrete measures for the implementation of blockchain technology. Among them Nasdaq, London stock exchange, and Japan Exchange Group.