The world's first industrial-scale blockchain in financial services will be switched on between September 2020 and March 2021, the ASX said on Friday, and will offer the possibility of settling trades in one day rather than two to reduce risk.
Speaking to an audience in New York City on Thursday, Digital Asset CEO Blythe Masters and R3 founder and CEO David Rutter worked to cast their projects not as applications but as entire ecosystems for developers to build apps of their own.
Australia's main stock exchange has said it will become the first global market to use the technology behind Bitcoin to clear and settle trades.
The Australian Securities Exchange (ASX) will replace its current clearing system with blockchain technology.
The new system has been in development and testing for more than two years and aims to cut the cost of transactions, and make them faster and more secure.
Would ASX upgrade?
After months of waiting, the markets finally have an answer, as the Australian Securities Exchange (ASX), the nation's largest domestic stock exchange, has officially revealed it will upgrade its post-trade settlement system, CHESS, using a blockchain platform designed by startup Digital Asset.
Australia’s main securities exchange is betting on the record-keeping technology that underpins bitcoin to process stock trading in the country.
The decision to adopt the technology to replace ASX Ltd.’s current decades-old system offers a significant foothold in mainstream finance for blockchain. ASX expects the shift will make the sharing of vast volumes of data more efficient and lead to cost savings for its customers.
There has been no shortage of milestones for Digital Asset Holdings, the distributed-ledger technology company co-founded in 2014 by Sunil Hirani, CEO of trueEX Group, and Donald Wilson Jr., CEO of DRW Trading Group. The most headline-grabbing was the March 2015 appointment of Blythe Masters as CEO.
A project to bring cutting-edge blockchain technology to the vast $3-trillion-a-day US repo market has come a step closer to fruition.
The tech firm led by Blythe Masters, the high-profile former JP Morgan executive, and the Depository Trust & Clearing Corporation, one of the largest US clearing houses, are moving to phase-two of the project after a successful "proof of concept" test, the firms said in a joint statement on February 27.
Digital Asset Holdings, where Masters is chief executive officer, is deploying what it calls fingerprints to address that problem. Though these fingerprints get shared among all users of a given blockchain, only trusted parties can decipher them.
In 2015 “blockchain” technology evolved from a novel backwater to a mainstream matter. A clear distinction has been drawn between bitcoin and other cryptocurrencies, on one side, and the technology that underpins them (now known as “distributed-ledger technology”). Today, virtually every large financial institution is exploring it. What was hailed as a great disruptive force for incumbents has evolved into an even greater enabler for them. In 2016 the first commercial implementations will start to be rolled out.
Recent research by Citigroup (C, -0.07%) projects that revenues of financial technology startups will leap 10 times, to more than $100 billion, in the next four years. Here are a handful of companies with major growth potential.
Digital Assets Holdings
Year founded: 2014
Notable Investors: Citigroup, IBM
Blythe Masters, chief executive officer of Digital Asset Holdings LLC, gestures as she speaks at the Bank of England Open Forum at the Guildhall in London on Wednesday, Nov. 11, 2015. Bloomberg Bloomberg via Getty Images
High-frequency traders can swap stocks in milliseconds, but it still takes a day or more for the money to move in many of Wall Street’s markets. Digital Asset Holding plans to speed that using blockchain—the technology behind Bitcoin. Blythe Masters, a pioneer of credit default swaps at JPMorgan Chase, joined as CEO last year.