Buzzing trend of Australian FinTech - ASX intends blockchain setup for settlements

We’ve already stated in our recent post also that Australia has been the predominant country for FinTech innovation.

There has been a five-fold rapid surge in the number of FinTech startups in Australia over the past 5 years and the sub-sectors encompassed have become more diverse, as per the reports of KPMG. Investment in the Australian FinTech sector has risen remarkably as the Australian FinTech ecosystem is becoming increasingly diverse.

It is reported that on the successful launch of the world’s first blockchain-based fixed income product. The World Bank, Commonwealth Bank of Australia (CBA), and other investors made the initiative possible, which stemmed in the bond-i raising more than $80 million.

While Australian Government’s 2018-19 budget has allocated $530,000 for blockchain research under the Digital transformation Agency (DTA) program, this development was exclusively prompted by a specific request from the country’s Prime Minister, Malcolm Turnbull.

Australia is cognizant of the vital portion of mass adoption strategy is ensuring that the public will have easy access to the technology or service in question and about the collaboration with Data61, the Herbert Smith Freehills law firm, and IBM to build the country’s first blockchain network.

The new project, tentatively called the Australian National Blockchain (ANB), is being referred to as “a significant new piece of infrastructure in Australia’s digital economy,” according to CIO.

For now, Australia’s leading stock market operator, ASX has recently divulged their intentions of setting up blockchain technology for settlements around 2021. But as per the report of Bloomberg, the ASX ltd does not sense any sort of astounding experience by the “deja-vu” who trailed the emerging technology.

While it has got the subscription, from the last couple of years, for the Clearing House Electronic Subregister System (CHESS). The Aussie stock exchange now switches the same with the innovative blockchain, a digitized, decentralized and distributed ledger technology. 

The essential backup data are kept up to date and synchronized in such a way that removes the inconsistency with the help of Blockchain technology, Hiom noted:

“There is a blockchain that is synchronizing my data store with yours, but the data store itself is a database that exists today. The innovation is the decentralized ledger that lets a client see ASX’s data. It’s taken an awful lot of risk and cost out of your back office because it is never the case that what you’ve got doesn’t match what I’ve got.”

“We’re not entering the fourth dimension here,” Peter Hiom, the deputy CEO, has stated.

“It’s a database that lets you do a bunch of things more efficiently than you can do at the moment,” he further added.

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