One of the largest Aussie institutions, Australian Securities Exchange (ASX) has mentioned that it will soon be adopting the blockchain technology thanks to a few partnerships it has managed to score with offshore companies.
The ASX has been working on this framework for two years now trying to find suitable partners to have the final go-ahead. The blockchain will be added to the ASX’s settlement and clearing systems, aka CHESS by 2021.
The ASX managed to find its preferred partners in the face of Digital Asset Holding and VMware, who it will together develop the platform. A three-way memorandum of understanding has been signed, which means the full initiation of the implementation of the project.
The platform will be developed by a custom made programming language being used by Digital Asset Holding called DAML, which will ensure the open-source of smart contracts, transparency and of course, better security.
Does this mean that crypto will be usable on the ASX?
The partnership did not mention anything about cryptocurrencies being used on the exchange, in fact, it is highly unlikely. However, this doesn’t mean that cryptocurrencies will “never” be used on the ASX.
What’s most likely to happen is that once the blockchain is installed on the exchange in 2021, it will be time to test it. Knowing how exchanges like to gather big piles of data, it’s likely that the testing period will continue for a minimum of two quarters. After this, the introduction of crypto usage can be considered.
But at that point, we need to consider if utility tokens will be featured on the exchange. It’s likely that only securities will find a place there.
But why will it be important to have cryptocurrencies as securities on the ASX? Well, because it’s one of the best sources of affirmation that crypto projects can use. “Listed on the ASX” is indeed a very attractive sentence to feature on the website.
A spokeswoman from one of the top Aussie bitcoin casinos commented saying that:
“If we were able to get a local cryptocurrency listed on the ASX we would immediately double our sales, that’s how much value this institution carries. Right now, Australians are extremely careful with the coins they choose to invest in, and a casino offering them its own version is definitely not going to be perceived as trustworthy.
Plus, Aussies don’t really trust coins listed on offshore crypto exchanges, nor do they trust the ones listed on local exchanges, it’s just very hard to earn the name of a trustworthy project. We at Playamo will definitely be following the developments over at the ASX, and if presented with the opportunity, will definitely list a security token one way or another”.
This is not the only industry that will vie for a position on ASX’s list, it’s possible that pretty much every Australian crypto project will apply for a spot, thus allowing the ASX to potentially become the biggest crypto exchange in the country.
It may be an anomaly from a crypto investor’s point of view, but for a person who’s been a victim of a crypto scam, it’s the best news they can wake up to.