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The ASX Throws its $250M Blockchain-Based CHESS Project in the Bin

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The Australian Securities Exchange (ASX) has abandoned a multi-million dollar blockchain project. Industrial scale blockchain use cases.

Blockchain is, well, a controversial technology. It highlights cryptocurrency capabilities and has failed to prove its effectiveness for things like databases, except for a few supply chain applications.

That’s why the ASX project was Important for the blockchain world.

In 2016 ASX announced that it would build a new facility. Post-trade solution Using blockchain technology. This solution replaces the legacy Clearing House Electronic Subregister System (CHESS) platform that has been in operation for approximately 25 years.

It’s a complex kit, but CHESS essentially performs all the major clearing and settlement functions for the Australian spot equity market. big Money moves through this thing every day.

The project was originally planned Operational in April 2021However, using COVID as an excuse, ASX has postponed its blockchain project until April 2022. Target revised to 2023.

I’ve been following this project for years (most of the links in this article are from previous publications I wrote), but what stands out the most here is the industry’s commitment to this project. The real rallying behind the ASX is the ability to bring fintech and the greater financial services ecosystem closer together. Benefit from CHESS alternatives business.And, as I’ve already said several times, it’s maximum Examples of good use cases for blockchain.

But today The Australian Financial Review reports ASX has decided to discontinue the CHESS replacement project. In other words, throw everything in the trash. $250 million, then seven years of work.

According to AFR, ASX blocked “after a devastating report from Accenture identified a range of issues, including uncertain timelines, communication issues with the technology vendor’s digital assets, and excessive complexity.” I have deprecated the chain project.

The report from Accenture comes after ASX’s fifth delay.

Essentially, the project turned out to be only 63% complete, with ASX admitting: There are significant technology, governance, and delivery challenges that must be addressed. ”

We’ll be sure to let you know when another real-world use case for this technology emerges.

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