Select a page

Banking News

ASX buys into blockchain

ASX buys into blockchain

(25 January 2016 – Australia) Last Friday, the Australian Securities Exchange (ASX Ltd) said it had purchased a minority stake in a US blockchain developer, positioning itself to become the first stock exchange in the world to use the new technology for public companies.

The A$14.9 million ($10.43 million) investment in Digital Asset Holdings is set to help to reduce costs and transactions times, as well as making them more secure, the ASX said in a statement.

"Distributed Ledger Technology could provide a once in a generation opportunity to reduce cost, time and complexity in the post-trade environment of Australia’s equity market," ASX Managing Director and CEO Elmer Funke Kupper said in the statement.

"Moreover, it could stimulate greater innovation by ASX and other providers of services to issuers, investors and intermediaries."

ASX bought a 5 percent equity interest in New York-based company. In addition to the investment, the ASX will fund an initial phase of development and secure a warrant that will give it the right to buy further equity and appoint a director to the board.

ASX will work with Digital Asset to design a new post-trade solution for the Australian equity market.

Australia's biggest banks are also involved in blockchain technology, as part of the global R3-led initiative to trial ways it can be used in financial markets.

East & Partners's avatar

Comment on this article

 

Your comments will not be published. Required fields are marked *

 

Please enter the word you see in the image below:


Subscribe

Subscribe to our mailing list

Sign up now to keep up-to-date with the latest
market news and insights in B2B banking.

* indicates required

For more information please read our Terms and Conditions and Privacy Statements.