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The Australian Stock Exchange will become the first in the world to adopt blockchain

The Australian Stock Exchange (ASX) announced today its intention to implement Blockchain technology to replace its current system for processing stock transactions. ASX – in partnership with Digital Asset, which provides the technology – will be the first exchange in the world to adopt Blockchain technology in the operation of its core services.

The exchange uses blockchain technology to replace current clearing and settling system, CHESS (electronic sub-registration system of clearing house). The distributed nature of Blockchain is an upgrade, as it provides an opportunity to process faster and more reliably, reducing costs at all levels.

ASX made this decision in partnership with Digital Asset, a consulting firm. Financial institutions adopt distributed record technology.

For two years, the Australian Stock Exchange has been studying and testing distributed record technology, which includes two independent third-party security reviews of Digital Asset solutions. ASX plans to switch to the new system by the end of March 2018.

This move marks an important moment for the adoption of Blockchain technology, placing Australia ahead of the race to the traditional financial sector to understand, experiment and implement

Digital Asset CEO Blythe Masters said:

"Together, DA and our ASX client showed that technology works not only, but "

Australia's leading stock exchange now joins a relatively short list of global exchanges that are taking bold and concrete steps towards the adoption of Blockchain technology, which includes the Nasdaq, the London Stock Exchange, and the Japan Exchange Group.