Australian Securities Exchange defers its transition to blockchain by six months 22362 ASX defers its planned transition to blockchain
News
Rakesh Ranjan Parashar
Sep 5, 2018 at 4:00 AM

According to a report by the Sydney Morning Herald, the Australian Securities Exchange (ASX) has postponed its move to adopt blockchain for equity transactions by six months.

The report says that the decision to delay the move comes as the exchange plans to devote more time to user development and testing.

The decision to replace the Clearing House Electronic Subregister System (CHESS) on Australia's main stock exchange was taken after two years of testing of distributed ledger technology (DLT).

This planned move will make the Australian Securities Exchange one of the biggest mainstream financial markets to use the relatively new ledger system, best known as the technology behind the bitcoin cryptocurrency.

The launch date for the transition has been deferred to March-April 2021 from the initial deadline which was the fourth quarter of 2020. The industry-wide testing plans and mandatory accreditation have both been deferred by the same time frame. The system was expected to be operational for market feedback by the end of March this year.

In an announcement in December last year, the ASX in partnership with Digital Asset, a consulting company run by former JPMorgan Chase & Co banker Blythe Masters decided to adopt blockchain to process equity transfers.

The initial testing phase included two independent third party security reviews of systems developed by Digital Asset.

Popularity of blockchain on a rise in Australia

It’s not only ASX which is going all out to adopt this new technology. There are plans underway throughout Australia to integrate blockchain to the mainstream. It’s not only the private sector that is taking active interest in this evolving technology but the government is also trying its best to harness the potential of blockchain.

As reported earlier, this July, IBM signed a five-year deal worth $740 million with the Australian government to use this technology to improve data security and automation across federal departments.

In another example of the growing popularity of this innovation, the World Bank launched its first public blockchain bond with the country’s largest bank, the Commonwealth Bank of Australia (CBA) in August.

In the current Australian Budget of 2018-2019 an allocation of $530,000 has been made by the government of Australia to promote research work in the domain of blockchain technology under the program of Digital Transformation Agency (DTA).

See Also: Australians can now pay everyday bills using cryptocurrencies

Australia gears up to refurbish legal industry with blockchain; CSIRO, IBM support

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