Australia

Australia Stock Exchange to Work With VMWare and Digital Assets on DLT

The Australian Securities Exchange (ASX) has signed a three-party memorandum of understanding (MOU) with Digital Asset and VMware to work together on distributed ledger technology (DLT) initiatives in Australia and New Zealand.

Under the principles in the agreement, ASX plans to provide its DLT offering with the support of Digital Assets and VMware. This will include the development of the application to replace CHESS (ASX’s equities clearing and settlement system), the support of DAML (the open source smart contract programming language used to build distributed applications), and the provision and support of the distributed ledger and associated infrastructure, which delivers ASX’s data privacy, confidentiality and security requirements at greater scale.

While ASX remains initially focused on the replacement of CHESS, the partnership will strengthen its ability to support the financial services industry using the infrastructure to create new services and innovations beyond clearing and settlement. It will also enable ASX, DA and VMware to work together to provide and support DLT solutions to other customers in Australia and New Zealand.

In the meantime, software for the new system to replace CHESS is being progressively deployed within ASX’s Customer Development Environment, where customers and their service providers have begun exploring the clearing and settlement functionality of the new system.

Peter Hiom

Peter Hiom, ASX Deputy CEO, said:

“This new partnership is a very positive development that will help us support a wider range of DLT solutions developed by the industry. It confirms our belief in the potential of DLT as we remain on track to deliver the CHESS replacement system in March-April 2021.”

Yuval Rooz

Yuval Rooz, co-founder and CEO of Digital Asset, said:

“We continue to achieve our milestones to deliver a production-grade, scalable distributed ledger solution for CHESS. VMware is now part of the mission we share with ASX to deliver a DAML-based distributed infrastructure to realise the full potential of this technology.”

David Tennenhouse

“Providing a state-of-the-art DLT-based system will create new business opportunities for the industry,”

said David Tennenhouse, Senior Vice President and Chief Research Officer at VMware.

“We’re working closely with DA and ASX on a combined offering to provide the enterprise-grade foundation for ASX, and we look forward to expanding our relationship.”