On Wednesday, the Australian Securities Exchange (ASX) announced plans to list tokenized real-world assets, including gold, on its platform. The ASX team confessed there had been challenges in listing crypto assets directly on its trading platform.
Dan Chesterman, the chief information officer at ASX, restated that the trading platform will consider listing the tokenized real-world assets over cryptocurrency. The executive mentioned that most crypto assets fail to meet the listing requirement at the primary phase.
Conditions for Listing an Asset on ASX
He confessed that the ASX team had initially tried listing cryptos on its platform, but the efforts failed to see the light. Chesterman expressed delight that he will access tokenized products on the ASX platform at the end of the listing process.
According to Yahoo Finance March 28 report, the ASX ranks position 16 as the largest stock exchange by market capitalization. In Q1 of 2023, ASX reportedly generated 82% of the total dollar turnover per the local equity market product.
In a previous report, an executive from a leading bank in Australia expressed optimism about blockchain technology. The executive labeled blockchain as an efficiency driver.
In support of the executive comments Howard Silby the National Australia Bank (NAB) chief innovation officer, affirmed that large institutions and fast-growing banks will continue to explore the blockchain ecosystem. Silby added that the highly valued customer experience is only obtained from innovation.
Why Did ASX Suspend Blockchain Updgrades?
On the contrary, the ASX team agreed to pause integrating blockchain technology on its trading platform. Chesterman noted that the ASX team had experienced recurring delays on the blockchain network. He added that the ASX team agreed to pause launching on the blockchain network to prevent exposing the customers to uncertainties and delays.
In the meantime, the ASX team will continue working with digital assets company to debut Synfini a blockchain development platform.
Following the suspension of ASX blockchain-powered upgrades on its clearing and settlement system, the public has condemned the stock exchange. Initially, the trading platform confirmed to invest around $166 million in developing the current clearing and settlement system.
Elsewhere the managing director of blockchain and digital assets at Commonwealth Bank, Sophie Gilder, argued that through the tokenization of assets and digitization of payment, institutions would manage to improve their efficiency, reduce risk and cut the operational cost.
She noted that it was difficult to outline the benefits of digital assets in the current market. In her opinion, Gilder admitted that digital assets provide efficiency and endless benefits to the user.
She mentioned that the world has shifted from irrational exuberance, which undermines market growth since it focuses more on capital than add-on utility services and products.