The Australian Securities Exchange (ASX) is unlikely to list a cryptocurrency directly on its exchange, but could consider an “appropriately backed” tokenized real asset such as gold.
Speaking to Cointelegraph, Dan Chesterman, ASX CIO and Group Executive Director of Technology and Data, said that while there are hurdles for it to list a cryptocurrency directly, the company could consider listing real-world token assets.
“There have, in the past, been challenges associated with getting to the point where we can directly list a cryptocurrency because it doesn’t meet a lot of the listing rules,” Chesterman said.
“Can I imagine it’s likely, eventually, that we’ll have our token product listed? Absolutely.”
ASX is the 16th largest stock exchange in the world by market capitalization, according to Yahoo Finance on March 28 a report. As of the first quarter of 2023, the ASX index accounted for approximately 82% of all dollar trading volume in domestic stock market products, per data From the Australian Securities and Investments Commission.
Chesterman’s approach to blockchain is in line with previous comments made by senior bank executives who suggested that the narrative around blockchain has become one about being an “efficiency driver.”
“The blockchain experience is not going away in large banks and large institutions,” said Howard Selby, Chief Innovation Officer at National Australia Bank (NAB).
“There are a lot of high-friction value customer processes that are still a very ripe area for innovation.”
Meanwhile, Sophie Gelder, Managing Director of Blockchain and Digital Assets at the Commonwealth Bank, believes that asset transfer and smart payments can lead to significant efficiencies while reducing risks and costs.
“In the current market, it’s hard to talk about the positive side of digital assets. Instead, I think it’s more about efficiency, and there’s a lot to be gained there,” Gilder said.
“So we’ve moved from irrational exuberance, which hasn’t actually been great for the market except to attract capital, to now focusing on what the plus is.”
Over the past year, the ASX has faced criticism over its decision to shelve a blockchain-based upgrade of its nearly 30-year-old clearing and settlement system, which has already cost as much as $166 million (AU$255 million).
Related: Blame for the failed blockchain upgrade of ASX’s CHESS system rages on
Chesterman emphasized that the decision was not a “rejection” of blockchain technology.
“Our decision to pause was based on our assessment that we were seeing some delays happening and recurring and we didn’t want to go into a process where there was a long and persistent delay, and that would have an impact on our customers,” he said.
“We made a very deliberate decision (…) to pause in order not to create an ongoing state of uncertainty.”
Chesterman said that the exchange continues to work with infrastructure firm Digital Assets on the development of the Synfini blockchain.
magazine: Crypto City Guide to Sydney: More Than Just a ‘Token’ Bridge
