Australian exchange officially abandons blockchain plans: Report
Australia’s stock market operator has decided to abandon plans to rebuild its software platform using blockchain technology, marking a significant rejection of the once-famous concept that rose to prominence through its association with cryptocurrencies.
The Australian Securities Exchange (ASX) caused frustration among market participants in November when it decided to “pause” the rebuilding of its extensive trading, settlement and clearing software based on decentralized computing. An external review concluded that after seven years of development, significant reworking was necessary.
After the initial hiatus, the company has indicated that it is exploring options for another attempt to rebuild its 30-year-old software. However, during a meeting with participants on May 17, the company was reported to have said it would not incorporate blockchain or any related distributed ledger technology (DLT).
When asked about the approach for the next attempt, Tim Whiteley, director of the exchange project, stated during the meeting that while they are exploring all options, they will likely need to use a more conventional technology rather than DLT or blockchain to achieve the desired business. outcome.
The statement indicates the conclusion of a project that was expected to showcase one of the most notable examples of a concept that aims to speed up online transactions through secure processing across multiple locations.
The ASX was believed to be the world’s first stock exchange to adopt blockchain technology in the operation of its core services in partnership with New York-based entrepreneur Digital Asset, which provides the technology. The ASX bought a small stake in Digital Asset after hiring it to rebuild its software in 2016.
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During the meeting, Whiteley informed attendees that the ASX was in the process of finalizing a new strategy by the end of the year. He mentioned that the company had sent out a request for information to potential software vendors and had also sent out a request for proposals (RFP) to vendors that expressed a more positive interest, and wanted more extensive feedback.
The ASX received feedback from market participants who expressed a preference for a less risky approach, avoiding a sudden switch to new software on a single date. Whiteley acknowledged that this feedback has been considered in the implementation planning process.
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