ASX lifts stake in Digital Asset Holdings

ASX lifts stake in Digital Asset Holdings

The Australian Securities Exchange is to lift its stake in blockchain startup Digital Asset Holdings, reinforcing its determination to press ahead with plans to develop a new post-trade platform based on distributed ledger technology.

Earlier this year, the Australian stock market operator invested $14.9 million in the US-based blockchain startup to acquire a 5% shareholding, fund an initial phase of development, and purchase warrants that gave it the right to take up an additional five percent stake and appoint a director.

With a beta test phase of the technology set to run in 2017, the ASX has exercised a portion of its options, paying $7.16 million to increase its holdings to 8.5%.

In a presentation to investors earlier this month, the Australian exchange says it expects to spend $50 million on its technology transformation programme during the course of 2016.

Development of the distributed ledger-based platform will take place in parallel with routine updates to the existing Chess system, with a final decision on the future market design to be made in late 2017.

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