The Australian Securities Exchange (ASX) is open to the possibility of listing tokenized real-world assets that are appropriately backed, according to Dan Chesterman, the Chief Information Officer (CIO) of ASX. While directly listing cryptocurrencies has proven challenging due to regulatory constraints, ASX sees potential in tokenized assets like gold.
As the 16th largest stock exchange globally by market capitalization, ASX holds a significant position in the local equity market. Although direct cryptocurrency listings face hurdles in meeting listing rules, Chesterman expressed optimism about the potential for tokenized products on the exchange. He clarified that while ASX has not rejected blockchain technology, it made a deliberate decision to pause the upgrade of its clearing and settlements system due to recurring delays and customer impact concerns.
Chesterman’s views align with those of banking executives who emphasize blockchain’s role as an efficiency driver. Howard Silby, Chief Innovation Officer at National Australia Bank, emphasized the ongoing experimentation and innovation in large banks and institutions. Sophie Gilder, Managing Director of Blockchain and Digital Assets at Commonwealth Bank, highlighted the potential for tokenization and smart payments to improve efficiencies while reducing risks and costs.
ASX continues its collaboration with Digital Assets, an infrastructure company, for the development of its blockchain platform Synfini. While facing criticism for suspending the blockchain-based system upgrade, ASX maintains that the decision was based on avoiding prolonged delays and uncertainty for customers.