Revolutionizing the Australian Securities Exchange: The Blockchain Leap in CHESS Replacement

Partnerships That Matter

The Australian Securities Exchange (ASX) has recently partnered up with tech giants VMware and Digital Asset to inject a bit of blockchain magic into their clearing and settlement system known as CHESS—modernizing it faster than you can say ‘cryptocurrency.’

A Commitment to Innovation

In a move that signals their commitment to innovation, the ASX signed a three-party memorandum of understanding (MoU) with VMware and Digital Asset. This agreement is not just a handshake; it’s a sign that all parties are ready to roll up their sleeves and dive into the blockchain ecosystem in Australia and New Zealand.

Smart Contracts to the Rescue

Included in this partnership is the support for DAML, an open-source smart contract programming language developed by Digital Asset. Imagine it as the Swiss Army knife of programming languages, built to construct distributed applications that could revolutionize the financial industry.

Two Years of Development: The Long and Winding Blockchain Road

The ASX’s journey to replace the CHESS with blockchain technology began back in 2017. From day one, the aim was to create a system that promised quicker transactions, reinforced security, and substantially cut costs. Who doesn’t want a little less financial drain in their life?

Delays: A Side Effect of Innovation

Like any ambitious project, the ASX had a slight hiccup: an initial launch date of 2020 had to be pushed back by six months due to the immense time needed for user development and rigorous testing. Innovation often comes with its own set of growing pains.

Looking Ahead: March-April 2021 Deadline

However, hope springs eternal! According to the ASX’s Deputy CEO, Peter Hiom, they’re still on track to unveil the new CHESS replacement system by March or April 2021. High stakes and big expectations lie ahead, and if successful, this could be a major turning point in how securities are traded in Australia.

A Historical Development Cycle

The ASX first introduced the blockchain development tool back in May 2017, giving developers a sneak peek with initial code for the Customer Development Environment. Now, imagine how much coffee those developers have consumed to get this far!