Australian bourse to use blockchain in ‘world-first’

sydney — Australia’s main stock exchange has said it will use blockchain, the technology behind cryptocurrency bitcoin, to process its equities transactions in a shift touted as a world-first for a major financial institution.

The Australian Securities Exchange (ASX), the eighth-largest sharemarket in the world, will replace its current system CHESS with the distributed ledger technology to manage the clearing and settlement for buying and selling stocks.

ASX chief executive Dominic Stevens said the move “will put Australia at the forefront of innovation in financial markets”, in a statement late Thursday.

“While we have a lot more work still to do, today’s announcement is a major milestone on that journey.”

Blockchain technology debuted in 2009 as a public, encrypted ledger

If it actually increases efficiency without compromising security, then banks will always be on the lookout for such innovation TS Lim, banking analyst at Bell Potter

for the digital currency bitcoin.

It has drawn interest from the established banking sector in recent years because of its potential for securely tracking transactions, allowing anyone to get an accurate accounting of money, property or other assets.

“If it actually increases efficiency without compromising security, then banks will always be on the lookout for such innovation,” Bell Potter banking analyst TS Lim said. — AFP