The Australian Securities Exchange (ASX) and Digital Asset, a New York-based firm, have been exchanging blame over the failure of ASX’s blockchain-based clearing system upgrade. The ASX had been planning to adopt blockchain technology for seven years, partnering with Digital Asset for the upgrade. However, on May 17, ASX announced that it would be abandoning the blockchain upgrade and likely looking at more conventional tech.
Eric Saraniecki, co-founder of Digital Asset, alleged that ASX was unwilling to hand over important test data that would’ve allowed Digital Asset to better test the functionality of the new system, which eventually caused the project’s failure. Secondly, he said that despite the ASX talking publicly about a “big bang” method of replacing its nearly 30-year-old CHESS platform, it was simultaneously telling Digital Asset to preserve antiquated elements of the old system.
However, according to ASX’s Non-Executive Director David Curran, the issue was a lack of communication from Digital Asset regarding their concerns. He added that if there were concerns about the project, they should have been raised and resolved. The ASX’s Managing Director and CEO Helen Lofthouse said that the decision to announce a pause on the upgrade arose from the conclusion that the original solution design “was not going to be able to do what we needed it to do.”
While it has been widely reported that the ASX had taken blockchain tech off the table completely, ASX CIO Tim Whiteley told Australian tech publication ITNews that “no firm decision” had been made. The ASX continues to explore all options for the solution design.
Overall, the failure of the ASX blockchain upgrade highlights the challenges that arise when implementing emerging technologies in complex systems. Effective communication and collaboration are crucial for successful technology adoption.