ASX set to lead in blockchain for public companies

Australian markets operator ASX Ltd on Friday said it has bought a minority stake in a U.S. blockchain developer, positioning itself to become the first stock exchange in the world to use distributed ledger technology for public companies. "Distributed Ledger Technology could provide a once in a generation opportunity to reduce cost, time and complexity in the post-trade environment of Australia’s equity market," ASX Managing Director and CEO Elmer Funke Kupper said in the statement. "Moreover, it could stimulate greater innovation by ASX and other providers of services to issuers, investors and intermediaries." Distributed ledger or blockchain technology maintains a continuously growing list of transaction data which cannot be tampered with or revised. Proponents say its use could make it easier to keep track of information and reduce settlement times. ASX bought a 5 percent equity interest in New York-based Digital Asset. It will also fund an initial phase of development and acquire a warrant that will give it the right to purchase further equity and appoint a director to the board. (VIEW LINK)