Australian Securities Exchange (ASX) has signed a memorandum of understanding (MoU) with Digital Asset and VMware to work together on initiatives based around blockchain-style distributed ledger technology (DLT).
According to ASX Digital Asset and VMware would support its efforts to provide support for DLT implementations in the Australian and New Zealand markets.
ASX is currently in the middle of one of the most prominent efforts to put blockchain-inspired technology into production. The exchange operator is currently working to replace the existing Clearing House Electronic Subregister System (CHESS) platform with another platform based on DLT. CHESS has been in operation since 1994.
ASX says that the DLT-based replacement for the system will offer a number of advantages for market participants, but will also allow it and other companies to build new services that interact system via Digital Asset Modeling Language (DAML): the open source smart contract programming language used to build distributed applications designed by Digital Asset.
Cryptoblock reports that the new ASX-operated system is expected to go live in 2021. In April, ASX revealed it had launched a development environment for the CHESS replacement.
Cointelegraph reports that ASX in 2016 acquired a 5 per cent stake in the US-based Digital Asset as part of its move to implement a DLT-based replacement for CHESS.
ASX said that the three-party MoU covers development the new system, supporting DAML, and the provision and support of the distributed ledger and associated infrastructure, which delivers ASX’s data privacy, confidentiality and security requirements at greater scale.
ASX has established a “DLT Solutions” team as part of its efforts to capitalise on its experience of implementing an enterprise-grade DLT system.
The parties said the MOU would also allow them to combine powers to provide and support DLT solutions to other customers in Australia and New Zealand.
VMware’s chief research officer David Tennenhouse said the virtualization heavyweight was working closely with DA and ASX on a combined offering to provide the enterprise-grade foundation for ASX, and was looking forward to expanding the relationship.
VMware is a NYSE-listed server virtualisation and cloud computing software provider DA is a world leader in DLT.