ASX Ltd., Australia’s primary stock exchange, has announced that it will be using blockchain technology to process equity transactions. The innovative technology will be provided by Digital Asset Holdings LLC, a start-up run by former JPMorgan Chase banker Blythe Masters. The ASX is the first global exchange to adopt blockchain technology.
Australia has been at the forefront of embracing blockchain for payments and settlements and has been leading the push towards legitimizing digital currency businesses through government regulation. Last Thursday, the Australian Senate passed legislation extending anti-money laundering and counter-terrorism financing regulation to digital currency exchanges. The move is a significant achievement for the digital currency industry as it means the government has sanctioned its investability, and also for blockchain, as it solidifies public trust in this technology.
Flash Payments, a fintech company in Australia, believes that the rest of the world won’t be too far behind in embracing blockchain technology. The current infrastructure used by banks and exchanges is outdated and faces numerous challenges relating to speed, security and cost. Blockchain has the power to eliminate these inefficiencies by enabling real-time settlements, improved visibility and reduced risk. The theoretical merits of distributed-ledger technology have been debated in financial services circles for some time, and this announcement from ASX Ltd shows that the technology can indeed live up to its potential.
Several other global exchanges have already been experimenting with blockchain, including Nasdaq Inc. and Deutsche Borse, but ASX Ltd is the first to put the technology into practice. Flash Payments recognizes the transformational potential of blockchain and has built its business entirely upon this technology. Using the innovative Ripple Consensus Ledger Protocol, along with their digital currency XRP, Flash Payments is able to provide an intelligent foreign exchange transfer service to business and individuals.
Flash Payments has been among a handful of fintech companies in Australia leading the way towards legitimizing digital currency businesses through government regulation. The endorsement of the government through legislation for digital currency exchanges really puts Australia at the forefront of the global community in terms of leading the blockchain revolution.
Adopting distributed-ledger technology is the obvious next step for banks and exchanges. Blockchain has the potential to revolutionize not just financial services, but also supply chain management, voting systems and other sectors where transparency and security are essential. The technology eliminates the need for middlemen, reducing costs and increasing efficiency.
In conclusion, the ASX Ltd’s announcement to use blockchain for equity transactions is a significant step forward for the industry and shows that the theoretical merits of the technology can be put into practice. It is encouraging to see such a prominent institution embrace blockchain, and we believe that other organizations around the world will quickly follow suit. Flash Payments is excited to be at the forefront of this revolution, and we are committed to providing our customers with the best services that the blockchain technology has to offer.
