- The Australian Securities Exchange has further delayed the launching of its blockchain clearing system until 2023.
- The planned blockchain platform is expected to replace the Australian old clearing system, CHESS.
For years now, the Australian Securities Exchange or ASX has been seeking to replace its old clearing system, the CHESS. The Australian bourse operator initially considered launching a blockchain clearing system in mid-2020 as a workable solution. However, further delays were to the project’s launch date. Today, a Reuters report informed that the blockchain platform is now slated for launch in the next three years.
Australia’s blockchain clearing platform
According to the information on Wednesday, the launching of the blockchain clearing system is expected to hold in 2023. The Australian bourse operator took the decision after consulting market participants. By pushing back the release dates for the blockchain clearing system, ASX buys more time to advance the platform to ensure it can handle more transactions, as requested by the industry participants.
The Industry demanded a more post-trade processing capacity for the blockchain platform than what was initially contemplated before the coronavirus pandemic erupted. The demand is in response to the surge in trades during the worst times of COVID-19. The ASX admitted to seeing a significant spike in transactions on its platform during the pandemic-led market volatile period in March.
The planned launching of a blockchain clearing system is purported to replace the Australian aging clearing system known as CHESS or the Clearing House Electronic Subregister System. The blockchain platform is expected to enable a more secure and efficient trading environment for the industry participants. ASX is quite confident that the blockchain clearing system will have a competitive advantage over other industry’s behemoths.
Recently, Cryptopolitan reported that popular banks in Argentina are considering a blockchain-based clearing system in collaboration with the country’s central bank (BCRA). The system is also expected to enable a secured environment for settlements amongst the participating banks.