Australia s ASX selects blockchain to cut costs, Reuters
(This version of the story corrects paragraph 7 to voorstelling ASX plans releasing timetable for transition to fresh system ter March 2018, not make it operational te March 2018)
By Susan Mathew and Anna Irrera
(Reuters) – Australia&rsquo,s ASX Ltd ( ASX.AX ) said on Thursday it would substitute its registry, settlement and clearing system with blockchain technology to cut costs for customers.
The decision to substitute the Clearing House Electronic Subregister System (CHESS) on Australia&rsquo,s main bourse goes after two years of testing of distributed ledger technology, also known spil blockchain.
&ldquo,Wij believe that using DLT to substitute CHESS will enable our customers to develop fresh services and reduce their costs,&rdquo, ASX Managing Director and CEO Dominic Stevens said.
The budge will make the Australian Securities Exchange one of the largest mainstream financial markets to use the relatively fresh ledger system, best known spil the technology underpinning the bitcoin crypto-currency.
Blockchain is a collective, verifiable and voortdurend record of gegevens that is maintained by a network of computers.
Banks and other large financial institutions have ramped up their investments ter the technology overheen the past few years, hoping it can simplify and cut the cost of back-office processes.
ASX expects to propose a timetable ter March 2018 for transition to the fresh system, with a final date to be determined te consultation with market participants.
The system would be designed without access barriers to non-affiliated market operators and clearing and settlement facilities. It also would give ASX customers choice overheen how they use its post-trade services.
ASX bought a minority stake ter U.S. blockchain developer Digital Asset through a A$14.9 million ($11.27 million) investment te January last year, to vormgeving a fresh post-trade solution for the Australian equity market.
The market technicus&rsquo,s decision is a win for the youthfull technology company led by Blythe Masters, a former senior JPMorgan banker.
Founded ter 2014, Digital Asset has raised more than $115 million from large firms including ASX, Goldman Sachs Group Inc ( GS.N ), JPMorgan Pursue & Co ( JPM.N ), CME Group Inc ( CME.O ), Deutsche Boerse (DB1Gn.Den) and Citigroup (C.N). &ldquo,After so much hype surrounding distributed ledger technology, today&rsquo,s announcement produces the very first meaningful proof that the technology can live up to its potential,&rdquo, Masters, Digital Asset&rsquo,s chief executive, said te a statement.
ASX shares gained spil much spil 0.88 procent by 0039 GMT, while the index wasgoed up 0.Five procent.
Reporting by Susan Mathew ter Bengaluru, Extra reporting by Anna Irrera te Fresh York, Editing by Stephen Coates