Australia based ASX Ltd, a renowned market operator owned by ASX Ltd publicly announced on Tuesday that it has postponed introducing the blockchain technology by extending six more months as it wants to focus more on the testing and development of the new age technology as per the valid news report by Reuters as on 4th September.
In 2017, ASX Ltd further commented about the applications of the blockchain technology saying that it will replace an entire clearing system, settlement and registry thereby reducing the cost for its customers. When it comes to replacing the Clearing House Electronic Sub-register System (CHESS) on Australia’s bourse will take almost two years for analyzing and testing of the distributed ledger technology – Blockchain.
The development will create the Australian Securities Exchange one of the largest mainstream financial markets that uses new ledger system supported by bitcoin cryptocurrency. With the shared features in place, the blockchain verifies and records the data through the network of computers in place. Besides this, ASX Ltd is expected to introduce the concept in March April 2021. At present, the company wants to postpone it almost for six months for industry-wide testing by acquiring the necessary accreditation within this time limit left.
In 2016, ASX purchased a minority stake in the US-based blockchain developer Digital Asset Holdings that enables ASX one of the first stock exchanges in the world that use distributed ledger technology for publicly traded companies.
Needless to say that the blockchain technology is going to change the dynamics of the way traditional businesses do globally. Fintech companies are the early adopters to enables the entire ecosystem in place. With the blockchain technology in place, ASX will not only streamline its entire process, however, it will create a paradigm for the world-wide stock exchanges!!