ASX completes first distributed ledger settlement system prototype

The Australian Securities Exchange (ASX) announced today that it has completed the first version of an alternative distributed ledger settlement system.

A presentation released by the ASX revealed the solution the exchange had developed in partnership with New York-based Digital Asset Holdings (DAH), a blockchain startup led by former JPMorgan Chase executive Blythe Masters that has raised $60 million in Series A funding, with more than $17 million coming from the ASX.

ASX said that replacing the existing settlement system involves communication with Australian regulators and relevant stakeholders. ASX is now considering how to replace its existing settlement system CHESS, and blockchain technology is seen as a possible path for radical innovation.

According to Computerworld, ASX CEO Dominic Stevens gave a speech today, in which he said the ASX exchange has begun work on the next phase of this journey.

ASX deputy CEO Peter Hiom reportedly told attendees:

“What we are changing is the way data is authenticated, authorized, accessed and stored. This creates a single source of truth that removes complexity and delivers significant benefits to the industry.”

The company added that a decision on whether to use it as a commercial-grade replacement technology would be made in 2018.

The ASX also said it had spent $38.5 million on technology research and development in the past financial year, but did not disclose how much it spent on distributed ledger technology.