Australian Stock Exchange considers listing tokenized real-world assets

The Australian Securities Exchange (ASX) is exploring the possibility of listing tokenized real-world assets, according to Dan Chesterman, the ASX’s Chief Information Officer. While the direct listing of cryptocurrencies on the exchange faces challenges due to regulatory compliance, Chesterman stated that the ASX could consider listing tokenized assets that are appropriately backed, such as gold.

Chesterman acknowledged the past difficulties in directly listing cryptocurrencies, citing non-compliance with listing rules. However, he expressed optimism about the potential for a tokenized product to be listed on the ASX in the future. As the 16th largest stock exchange globally by market capitalization, the ASX accounted for approximately 82% of the total dollar turnover in local equity market products in the first quarter of 2023, as reported by the Australian Securities and Investment Commission.

Chesterman’s stance on blockchain aligns with earlier statements made by banking executives who view blockchain as an efficiency driver. Howard Silby, Chief Innovation Officer at National Australia Bank (NAB), emphasized that large banks and institutions continue to experiment with blockchain due to its potential to streamline high-friction, high-value customer processes. Sophie Gilder, Managing Director of Blockchain and Digital Assets at Commonwealth Bank, highlighted the efficiency gains and risk reduction that can be achieved through the tokenization of assets and smart payments.

While the ASX has faced criticism for suspending the blockchain-based upgrade of its clearing and settlements system, Chesterman clarified that the decision was not a rejection of blockchain technology. The pause was motivated by concerns over recurring delays that could impact customers. The ASX remains committed to blockchain development and continues to collaborate with infrastructure company Digital Assets for its Synfini blockchain development platform.

ASX is exploring the possibility of listing tokenized real-world assets as it navigates the regulatory challenges surrounding the direct listing of cryptocurrencies. The exchange’s focus on blockchain as an efficiency driver aligns with the perspective of major banking executives, who see potential in streamlining processes and reducing risks through blockchain adoption. The ASX’s decision to pause its blockchain-based upgrade was driven by the aim to avoid prolonged delays and maintain customer satisfaction, while the exchange continues to work on blockchain development with its partner Digital Assets.