The Australian Securities Exchange (ASX) is unlikely to directly list a cryptocurrency on its exchange but is open to the idea of listing tokenized real-world assets, such as gold.
The ASX’s Chief Information Officer and Group Executive of Technology and Data, Dan Chesterman, explained that listing a cryptocurrency poses challenges due to the existing listing rules.
However, he expressed the possibility of listing a tokenized product in the future.
As the 16th largest stock exchange globally by market capitalization, the ASX holds a significant position in the Australian equity market.
In the first quarter of 2023, the ASX accounted for approximately 82% of the total dollar turnover in local equity market products, according to data from the Australian Securities and Investment Commission.
Chesterman’s stance on blockchain aligns with sentiments expressed by banking executives, who see blockchain as a driver of efficiency.
Howard Silby, the Chief Innovation Officer at National Australia Bank (NAB), noted that large banks and institutions continue to experiment with blockchain, particularly in areas with high friction and high-value customer processes.
Similarly, Sophie Gilder, Managing Director of Blockchain and Digital Assets at Commonwealth Bank, emphasized the potential for tokenization and smart payments to enhance efficiency and reduce risks and costs.
Despite criticism over the suspension of its blockchain-based upgrade to the clearing and settlements system, which incurred significant costs, the ASX clarifies that the decision was not a rejection of blockchain technology.
Chesterman explained that the pause was a deliberate choice to prevent prolonged delays and maintain certainty for customers.
The ASX continues its collaboration with Digital Assets, an infrastructure company, for the development of its blockchain platform, Synfini.
In conclusion, the ASX is cautious about directly listing cryptocurrencies but remains open to the possibility of tokenizing real-world assets.
The exchange recognizes the potential of blockchain technology to drive efficiency in the financial sector.
The decision to pause the blockchain upgrade was made to avoid prolonged uncertainty for customers, and the ASX continues its partnership with Digital Assets for blockchain development.
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