- Australian National Stock Exchange recently announced a partnership with a financial institution iSignthis.
- The two plan to create a new business — ClearPay — which would launch a blockchain-based platform for trading securities.
- The new venture comes as a response to the Australian Securities Exchange's decision to create its own blockchain-based platform for securities.
According to recent reports, two Australian publicly listed companies — National Stock Exchange owner, NSX Ltd., and iSighthis — announced a joint venture earlier today. The partnership seems to be aiming at offering a new blockchain-based platform, dedicated to trading digital securities.
The joint venture, known as ClearPay, will allegedly offer a platform that will be based on DLT. As such, it will be able to offer same-day DVP (Delivery Versus Payment) settlements. iSignthis, a known financial institution, plans to integrate its advanced ‘know your customer’s customer’ security, but also additional security solutions.
The companies have revealed that they plan to turn ClearPay into a direct competitor of ASX (Australian Securities Exchange). However, ASX is also creating its own DLT-based version, which would replace the now-outdated CHESS clearing system. The exchange is collaborating with a blockchain startup Digital Asset on the creation of the new platform.
Just like ClearPay, it will provide same-day settlements, which are currently in high demand in an industry that typically takes as many as 3 business days to clear trades completely. From what is known, the ASX estimates that it should be able to start tests of the new platform in July 2020.
The market agrees: Emerging technologies must replace the outdated ones
Meanwhile, NSX’s CEO, Thomas Price, stated that the market is in a broad agreement that cash equity exchanges are facing a worldwide tech revolution. The process of change is already challenging old methods of making settlements and clearing trades. Price added that the company carefully monitored the development of emerging technologies, and has decided that it is time to act.
As part of the agreement between the companies, NSX received a $4.2 million-large investment from ISX. This allowed ISX to become an owner of 12.96% stake in NSX, with the price per share sitting at $0.145.
According to the deal, ClearPay should go early next year. After that, the companies plan to use a network of brokers — domestic and international ones — to expand the new business.