NSX and iSignthis Join Forces
In a move set to shake up the Australian financial landscape, NSX Limited has announced a collaboration with iSignthis (ISX) to launch ClearPay, a groundbreaking initiative aimed at enabling same-day settlements of stock trades using blockchain technology.
Enter ClearPay: The New Kid on the Block
So what exactly is ClearPay? Well, it promises to be a superhero, swooping in to replace the current slowpoke clearing and settlement system. Traditionally, share trades could take up to three days to settle; however, with ClearPay’s magic wand of distributed ledger technology, this could soon be reduced to same-day processing or sometimes even the next day, meaning buyers and sellers can finally shake hands—virtually, of course—much faster than before.
Meet the Competition: DESS vs. CHESS
ClearPay’s new blockchain-based Digital Exchange Subregister System (DESS) isn’t just a catchy name. It’s gearing up to take on the notorious CHESS (Clearing House Electronic Subregister System), which has held a monopoly in Australia since its inception in 2017. Did someone say competition? CHESS better watch its back, because DESS is coming in with some serious upgrades!
iSignthis Brings Its A-Game
With a 59% stake, iSignthis is not just along for the ride; they’re steering the ship and bringing their Know Your Customer (KYC) expertise to the table. Their managing director, John Karantzis, expressed excitement about the competition this venture will generate, stating, “iSignthis brings an inherent high technology capability to the NSXA.” Sounds like someone’s ready to shake things up!
Regulatory Landscape: What You Need to Know
ClearPay is keenly aware of regulations, initially running under DvP model 1, a securities settlement mechanic set by the Bank of International Settlements. They’ll be cutting through the red tape by not pursuing a Clearing and Settlement Facility Licence. Instead, they’ll rely on Paydentity for comprehensive counterparty identification and verification—truth-telling, one block at a time!
The Bigger Picture: A National Blockchain Strategy
The timing of this venture is no coincidence. Just recently, the Australian government unveiled its national blockchain strategy. With initiatives like ClearPay in the works, the future of finance in Australia looks poised for a digital makeover—one where trades settle faster than you can say ‘blockchain scandal.’
