ASX in collaboration with VMware will create a clearing and settlement system on the blockchain

The Australian Stock Exchange (ASX) has signed an agreement with cloud computing giant VMware to accelerate the development of its blockchain-based clearing and settlement system.

ASX said a new agreement with VMware and its existing partner, Blockchain Digital Asset (DA), will help support Exchange Initiatives related to Distributed Registry Technology (DLT) in Australia and New Zealand.

ASX works
over the replacement of the existing Clearing House Electronic Subregister System (CHESS) clearing and settlement system since 2017 in collaboration with DA. Initially, it was assumed that the system will begin to function by the end of 2020, but its launch was delayed until the second quarter of 2021.

Digital Asset CEO Yuval Rooz recently noted that the ASX project is “quite complex, given that they are working to replace“ all the principles of the Australian Clearing Center’s functioning ”and“ the events of the entire life cycle of Australian common stocks ”.

The new partnership “confirms our belief in the potential of DLT, as we continue to adhere to the plan to replace the CHESS system in March-April 2021,” said Peter Hiom, ASX Deputy General Director.

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VMware Senior Vice President and Principal Investigator David Tennenhouse said:

“We work closely with DA and ASX and will introduce a modern DLT-based system that will create new business opportunities.”

Mid-Month ASX Confirmed
active development of a clearing and settlement system on the blockchain. As the exchange noted, the new system “will provide increased security, stability and productivity” for the services of post-trading stock services.