ASX, a major player in Australia’s financial sector, has made an unexpected move by abandoning plans to use blockchain technology to rebuild its software platform. The decision indicates a significant shift in perceptions regarding the once-celebrated concept that rose to prominence alongside the growing popularity of cryptocurrencies. This departure from its original intentions highlights the challenges and limitations that have become apparent during the implementation journey.
According to a recent meeting, ASX has made a considerable announcement stating that it will exclude blockchain technology and any related distributed ledger technology (DLT) from its future plans. This marks a noteworthy shift in strategy from the company’s previous intentions to incorporate decentralized computing using blockchain technology into the comprehensive trading, settlement, and clearing software. Following the initial pause in November 2022 after seven years of development, ASX has expressed its intention to explore alternative approaches for a fresh attempt at rebuilding its software, which has been in use for over three decades.
The ASX had set its sights on becoming the world’s first securities exchange to integrate blockchain technology into its core services. In 2016, the ASX had even acquired a small stake in Digital Asset, a New York-based contractor that provided the necessary technology to rebuild its software. However, Tim Whiteley, the project director, revealed a significant change in direction. While the ASX is open to exploring all available options, Whiteley stated that the desired business outcomes would likely require the utilization of more conventional technology rather than blockchain.
In the aforementioned meeting, Whiteley updated the participants on the company’s progress toward formulating a new strategy, with an aim to finalize it before year-end. This highlights the organization’s commitment to driving forward with purpose and direction. The ASX’s decision to abandon blockchain rebuild marks a significant turning point that sheds light on the challenges and limitations faced by blockchain technology’s implementation journey.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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