Australian Securities Exchange Cancels Blockchain-Based Clearing System at $168M Cost

The ASX said the decision has been taken "in light of the solution uncertainty."

AccessTimeIconNov 17, 2022 at 9:19 a.m. UTC
Updated May 9, 2023 at 4:02 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Australian Securities Exchange (ASX) has cancelled its much-delayed blockchain replacement to its aged Clearing House Electronic Subregister System (CHESS).

The ASX said the decision has been taken "in light of the solution uncertainty" and will incur a charge of AUD $250 million ($168 million) in a statement Thursday.

  • AI Will Make Music 'Come Alive Again,' CreateSafe CEO Says
    00:39
    AI Will Make Music 'Come Alive Again,' CreateSafe CEO Says
  • A Look Back: Blockchain Technology in 2023
    00:54
    A Look Back: Blockchain Technology in 2023
  • Why Zug Is Ranked as the Top Global Crypto Hub of 2023
    02:44
    Why Zug Is Ranked as the Top Global Crypto Hub of 2023
  • Why Injective's INJ Has Surged 3,000% in 2023
    00:52
    Why Injective's INJ Has Surged 3,000% in 2023
  • A report by consultancy Accenture identified "significant challenges" with the the design of the blockchain system, such as uncertainty over how ASX requirements interact with the application and underlying ledger.

    "Current CHESS remains secure and stable, and is performing well," ASX said. "ASX will continue to invest in its capacity and resilience."

    The planned blockchain system for settling trades was intended to be a replacement for CHESS, which ASX first said it was replacing in December 2017 with the original plan for it to be operational by Q1 2020.

    However, the project was pushed back to August 2021 and again until 2022, with ASX citing COVID-related disruption as the cause of the delays.

    While the delays drew criticism from both Australia's central bank and financial regulator, the ASX insisted the delays were justified to ensure the blockchain-based system was fit for purpose to handle meet peak capacity.

    The ASX is Australia's major stock exchange and has a market capitalization of around $1.55 trillion as of September this year.



    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


    Read more about