AFP / File / GREG WOOD
The Australian Securities Exchange (ASX), the eighth-largest sharemarket in the world, will replace its current system CHESS with the distributed ledger technology to manage the clearing and settlement for the buying and selling of stocks
Australia’s main stock exchange has said it will use blockchain, the technology behind cryptocurrency bitcoin, to process its equities transactions in a shift all of a world-first for a major financial institution. The Australian Securities Exchange (ASX), the eighth-largest sharemarket in the world, will replace its current trading system.
ASX chief executive Dominic Stevens said the move “will put Australia on the forefront of innovation in financial markets,” in a late Thursday statement. “While we have a lot more work still to do, today’s announcement is a major milestone on that journey.” Blockchain technology debuted in 2009 as a public, encrypted ledger for the digital currency bitcoin. It can be done in the form of secure transactions, allowing anyone to get an accurate accounting of money, property or other assets. “Bell Potter Banking Analyst TS Lim told AFP. “At the end of the day, they’ll keep an eye on it but they would not like it, it’s all about risk management and preserving the security of customers.” The ASX said it would be used by Digital Asset’s blockchain platform. The technology is set to take a closer look at the Australian newspaper reported. “Digital Power chief executive Blythe Masters said in a statement. He added that the switch to blockchain showed it “can meet the requirements of mission critical financial infrastructure”. The ASX said it would be released on March next year.

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