Australian Stock Exchange Drops Plans for Blockchain Implementation

Updated: 19 May 2023

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In a significant move, the Australian stock market operator (ASX), has abandoned its plans to rebuild its software platform using blockchain technology.

This decision marks a notable rejection of the once highly-celebrated concept that gained prominence alongside cryptocurrencies.

Australian Securities Exchange Abandons Blockchain Plans for Software Platform Rebuild

The ASX’s initial decision to “pause” the rebuild in November 2022 sparked frustration among market participants. After seven years of development, an external review concluded that substantial rework was necessary.

During a meeting on May 17, ASX clarified that they have decided not to incorporate blockchain or any related distributed ledger technology (DLT) into their plans for rebuilding their 30-year-old software. When questioned about their approach for the next attempt, project director Tim Whiteley stated that they are considering all options but are leaning towards using more conventional technology to achieve their desired business outcomes.

The statement represents the conclusion of a project that aimed to showcase an innovative concept for enhancing online transactions by securely processing them across multiple locations. ASX positioned itself to be the world’s first securities exchange to adopt blockchain technology for its core services. It collaborated with the New York-based contractor Digital Asset, which was tasked with providing the technology. In 2016, ASX hired Digital Asset to rebuild its software and also acquired a small stake in the company.

During the meeting, Whiteley informed participants that ASX was progressing towards finalizing a new strategy by the end of the year. He mentioned that the company had sent a request for information to potential software vendors and had requested a proposal from interested parties to obtain more comprehensive feedback.

ASX received feedback from market participants who preferred a less risky approach, avoiding a sudden transition to new software on a single date. Whiteley acknowledged that the implementation planning process had considered this feedback.

Australian Exchanges Address Concerns Over Binance’s Payment Provider Issue

Australian cryptocurrency exchanges have moved swiftly to address concerns about contagion following the news that Binance Australia’s payments provider, Zepto, was instructed to terminate its support for the exchange. Binance Australia has informed its users that Australian dollar services are temporarily suspended.

However, industry leaders such as Independent Reserve CEO Adrian Przelozny have expressed confidence that this issue is specific to Binance and not indicative of a broader problem within the industry. Przelozny stated that Australian dollar deposits and withdrawals on his exchange continue without interruption.

BTC Markets CEO Caroline Bowler echoed this sentiment, assuring users there is no cause for concern. She emphasized the close collaboration between BTC Markets and their payments provider, particularly in addressing scams and potential threats.

A brief note to reassure Aussie crypto traders that @BTCMarkets AUD payment rails are unaffected and open for business.

— Caroline Bowler (@CaroBowler) May 18, 2023

Caroline Bowler, CEO of BTC Markets, reassured users that no concerns had been raised regarding their exchange. She emphasized their long-standing accountability and strong relationship with their payment provider, which has been in place for a substantial period.

Jonathon Miller, the managing director of Kraken Australia, commented on the situation. She notes that there are only a few crypto-friendly payment providers in the local market. He expressed sympathy for Binance Australia, stating that it is unfortunate to see a business forced to terminate access for its clients abruptly.