by JP Buntinx
Stock exchanges can benefit from embracing blockchain technology in the coming years. Added transparency and quicker completion of services will benefit all parties involved in a transaction. Sydney Stock Exchange, together with Bit Trade labs, has been working on a blockchain-based settlement solution. The prototype has been tested successfully, which allows real-time allocation and issuance of equity securities.
APXS Achieves Great Success With Blockchain Prototype
The joint venture between Bit Trade Labs and Sydney Stock Exchange is known as APX Settlement Pty Ltd., or APXS. By successfully prototyping their blockchain smart register for equity securities, the team takes an important step toward the integration of distributed ledgers. The ultimate goal is to build an instantaneous settlement-and-transfer-upon-trade platform over time.
This particular blockchain platform has been in development since May 2016, when APXS announced the project. For now, the idea was to use this distributed ledger platform for the Sydney Stock Exchange’s equities and private markets infrastructure.
APXS Has a plan on the table to expand this new blockchain platform to other markets. Mainly commodities markets are of great interest, as that industry is in dire need of a revamp as well. Moreover, this platform will be opened up to the government and financial industry, allowing them to integrate new technologies into their existing infrastructure.
In the official press release, APXS CEO David Lawrence stated:
“We are working with government, regulators, the Australian Digital Currency and Commerce Association (ADCCA) and our expanding group of industry partners to deliver innovative solutions using new technologies. Our ongoing program of development highlights the need for a technology agnostic regulatory environment to fully maximise the value of the emerging technology and competition.”
Bit Trade Labs is very excited about the platform and how the development is progressing. Despite being in the early stages, a bold approach to collaborating with industry experts is yielding promising results. In fact, company CEO Jonathon Miller stated how “the scale of value and efficiencies that can be achieved through the use of a smart register promise to far exceed our initial expectations.”
Sydney Stock Exchange Continues Development
It is evident the Sydney Stock Exchange wants to become a leader when it comes to embracing innovative technologies. Adopting a settlement and smart register service based on distributed ledger technology is a significant step towards achieving that goal.
Prototyping such a solution is one thing, but integrating it into a real-life situation is something else entirely. For now, there is no official timeline regarding the future development of this smart register service. However, keeping in mind how APXS wants to expand the usability of this platform, it seems to be only a matter of time until more information becomes available.