ASX to Use Blockchain Tech Developed by Digital Asset

digitalasset.com

The Australian Securities Exchange or ASX recently made an announcement on the replacement of its CHESS post-trade settlement system with technology developed by Digital Asset, a blockchain startup.

It has taken two years of building proofs of concept, working with potential users, and testing implementation, which makes the decision a key milestone: ASX will become the first mainstream exchange in the world to have migrated its core services to a system which uses blockchain technology.

ASX CEO and Managing Director Dominic Statement said, “We believe that using DLT to replace CHESS will enable our customers to develop new services and reduce their costs, and it will put Australia at the forefront of innovation in financial markets. While we have a lot more work still to do, today’s announcement is a major milestone on that journey.”

The platform built by Digital Asset will be using technology to allow mutualization of data on the financial market and its processes across multiple participants – all the while maintaining confidentiality and scalability which are critical characteristics for market infrastructures.

The exchange also announced that it has taken its pro-rata right to participate in the Series B financing of Digital Asset which they have recently announced. The deal is part of the $115 million Digital Asset has raised to date.