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The Australian Securities Exchange (ASX) may not be rushing to incorporate cryptocurrency into its portfolio, but it is not ruling out the potential of tokenizing tangible assets. An "adequately supported" token representing something of actual value, like gold, may well find its place on ASX's roster, shared Dan Chesterman, the company's CIO and Group Executive of Technology and Data.
Chesterman acknowledged that there are substantial barriers to directly incorporating cryptocurrencies into the exchange, citing these digital assets' inability to meet numerous listing criteria. However, the advent of a tokenized product being listed is something he doesn't shy away from, leaving open a door for more tangible assets to be tokenized and listed.
Ranked as the world's 16th largest stock exchange in terms of market capitalization, ASX isn't small-time. Almost 83% of the total dollar turnover for local equity market products fell under its umbrella as of Q1 2023, according to the Australian Securities and Investment Commission data.
Incorporating blockchain and the idea of tokenizing real-world assets follows a similar path trodden by several high-ranking banking executives, viewing blockchain less as a vehicle for cryptocurrency and more as an avenue to heightened efficiency.
Both Sophie Gilder, Managing Director of Blockchain and Digital Assets at Commonwealth Bank, and Howard Silby, the National Australia Bank's Chief Innovation Officer, concur that blockchain isn't a fading trend. Gilder asserts that tokenizing assets coupled with intelligent payments could indeed enhance efficiency, trim risks, and slash costs.
ASX's stance on blockchain has weathered criticism in the past year, particularly for their decision to halt the update of their aging clearing and settlements system. Despite costing up to $166 million, Chesterman maintains this pause wasn't a denouncement of the technology. He emphasizes that recurrent delays were the cause, and they didn't want to negatively affect their clients with an ongoing delay.
In the face of criticism, ASX persists in its collaboration with infrastructure company Digital Assets on the blockchain development platform, Synfini.
