| Australia's failed blockchain project for capital markets infrastructure
August 20, 2024--A world-leading bid effort to use blockchain technology to upgrade key capital markets infrastructure ended when ASX Ltd (the Australian Stock Exchange) paused the project and wrote off costs of AUD 250 million ($169m). On 14 August the Australian Securities and Investments Commission (ASIC) watchdog announced it was suing the ASX for "allegedly making misleading statements". |
| The ASX had announced the blockchain project to replace the Clearing House Electronic Subregister System (CHESS), which manages shareholdings and settlement, according to this report in The Block website. CHESS is a clearing and settlement system for the cash equities market.
According to an ASIC press release: "ASIC alleges statements made in ASX announcements on 10 February 2022 that the project remained 'on-track for go-live' in April 2023 and was 'progressing well' were misleading." |