The Australian Securities Exchange (ASX) has announced the official adoption of blockchain for registering shareholder stakes and managing clearing and settlement procedures after testing the technology for about two years, Cryptovest reported.
The ASX thus becomes the first mainstream exchange to fully rely on distributed ledger technology (DLT) for complex tasks.The bourse will replace its Clearing House Electronic Subregister System (CHESS) starting in March 2018, but the precise timing of the full transition is still unclear.
“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,” ASX CEO Dominic Stevens said in a statement.
“Having completed this work, 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,” he added.
In January 2016, ASX invested over $11 million in US-based blockchain company Digital Asset, which is responsible for developing and providing DLT solutions for the Australian stock market.
Digital Asset CEO Blythe Masters welcomed the ASX announcement with the following comment:
“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.”