ASX Gives Digital Asset’s Technology Green Light to Replace CHESS
ASX today announced its intention to replace the system that underpins the post-trade processes of Australia’s equity market with the Digital Asset Platform, following the successful completion of extensive testing over the past two years.
“We’ve given over 80 DLT system demonstrations to more than 500 attendees, and conducted over 60 CHESS replacement workshops for more than 100 organisations from the global financial services industry,” Peter Hiom, ASX Deputy CEO said. “ASX has formed a strong partnership with Digital Asset over the past two years, and we’re confident we have chosen the right partner.”
The DA Platform uses Distributed Ledger Technology to allow the mutualization of financial market data and processes across multiple market participants. It does this while maintaining confidentiality and scalability, both critical for market infrastructures.
“We believe that using DLT to replace CHESS will enable our customers to develop new services and reduce their costs, and it will put Australia at the forefront of innovation in financial markets,” said Dominic Stevens, ASX Managing Director and CEO. “Today’s announcement is a major milestone on that journey.”
The ASX also announced that it has taken up its pro-rata right to participate in Digital Asset’s recently announced Series B financing. This additional participation brings the total funding raised by Digital Asset to over $115 million.