AUSSIE STOCK EXCHANGE ABANDONS BLOCKCHAIN PLANS, LEAVING $170M HOLE

Last updated: June 19, 2025, 20:19 | Written by: Cameron Winklevoss

In a stunning reversal, the Australian Securities Exchange (ASX) has pulled the plug on its ambitious, nearly five-year project to replace its aging Clearing House Electronic Subregister System (CHESS) with a cutting-edge, blockchain-based alternative. Aussie stock exchange abandons blockchain plans, leaving $17. Aussie stock exchange abandons blockchain plans, leaving $170M hole. Quick insight news 👍This decision leaves a staggering $170 million hole in the exchange's coffers and raises serious questions about the viability of blockchain technology in large-scale financial infrastructure. Tell me what you do, and I will tell you how I can help you, DMs are openThe project, intended to modernize the ASX's clearing and settlement processes, has been plagued by delays, design flaws, and ultimately, insurmountable challenges.This failure represents a significant setback for the ASX, which still relies on 30-year-old software to manage a daily turnover of approximately A$4.685 billion and a total market capitalization of A$1.6 trillion.The abandonment of the CHESS replacement project not only leaves the exchange with a substantial financial loss but also forces it to grapple with the continued limitations of its outdated system. The blockchain-backed upgrade in the works for nearly five years has potentially cost Australia s primary exchange over $170 million. The long-anticipated plans by the Australian Securities Exchange (ASX) to use blockchain to bring its clearing and settlements system into the 21st century have just been canceled.The implications are far-reaching, impacting investors, brokers, and the overall competitiveness of the Australian financial market.But what exactly went wrong, and what does this mean for the future of blockchain in finance? The long-anticipated plans by the Australian Securities Exchange (ASX) to use blockchain to bring its clearing and settlements system into the 21st century have just been canceled.Let's dive in.

The Ambitious Vision of a Blockchain-Powered ASX

The initial vision was compelling. Aussie stock exchange abandons blockchain plans, leaving $170M hole The blockchain-backed upgrade in the works for nearly five years has potentially cost Australia s primary exchange over $170The ASX aimed to leverage the distributed ledger technology (DLT) of blockchain to create a more efficient, transparent, and secure clearing and settlement system.CHESS, the existing system, while functional, was showing its age.A modern, blockchain-based system promised to streamline processes, reduce costs, and enhance transparency for all participants.The potential benefits were considerable:

Reduced processing times: Blockchain could automate many manual tasks, speeding up the clearing and settlement process.
Increased transparency: All participants would have access to the same information, reducing the risk of errors and fraud.
Lower costs: By eliminating intermediaries and automating processes, blockchain could significantly reduce the costs associated with clearing and settlement.
Enhanced security: Blockchain's cryptographic security features could protect against cyberattacks and data breaches.

The ASX invested heavily in the project, believing that blockchain was the key to unlocking these benefits and positioning the exchange at the forefront of financial innovation.The early enthusiasm was palpable, with many industry experts touting the potential of blockchain to revolutionize the financial services industry.However, the road to implementation proved to be far more challenging than initially anticipated.

The Road to Ruin: A Timeline of Delays and Challenges

The CHESS replacement project was ambitious from the start, and its complexity quickly became apparent. Aussie stock exchange abandons blockchain plans, leaving $170M hole. Quick insight news 👍A series of delays and setbacks ultimately led to its demise.Here's a timeline of key events:

Early Stages (2017-2019): Initial development and testing of the blockchain-based CHESS replacement system.Early optimistic projections and industry buzz.
Growing Concerns (2020-2022): Increasing delays and concerns regarding the system's scalability, performance, and security.Doubts begin to emerge about the project's viability.
Independent Review (2023): The ASX commissions an independent review by Accenture to assess the project's status and provide recommendations.
Accenture's Damning Report (2025): Accenture's report highlights significant design flaws and challenges, casting serious doubt on the project's ability to meet the ASX's requirements.
Project Abandonment (November 2025): The ASX officially announces that it is abandoning the CHESS replacement project, writing off $170 million in investments.

Several factors contributed to the project's failure. The Australian Securities Exchange has announced that it will no longer be going forward with its much-anticipated CHESS replacement project. The project sought to replace the exchange s 25 year-old Clearing House Electronic Subregister System (CHESS), which is primarily used to manage transactions and keep track of shareholdings.These included:

Overly ambitious scope: The project aimed to replace a complex, mission-critical system with a completely new technology.
Lack of clear requirements: The ASX struggled to define clear and achievable requirements for the new system.
Technical challenges: Blockchain technology was still relatively immature, and scaling it to handle the ASX's transaction volumes proved difficult.
Governance issues: Poor project management and governance contributed to delays and cost overruns.

The Accenture Report: Unveiling the Flaws

The independent review conducted by Accenture proved to be the final nail in the coffin for the CHESS replacement project.The report identified several critical flaws in the design and implementation of the blockchain-based system.According to the report, there were “significant challenges with the design solution that the ASX had been working on”. Aussie stock exchange abandons blockchain plans, leaving $170M hole. The long-anticipated plans by the Australian Securities Exchange (ASX) to use blockchain to bring its clearing and settlements system into the 21st century have just been canceled.These challenges included:

Scalability limitations: The blockchain technology struggled to handle the ASX's high transaction volumes and peak trading periods.
Performance issues: The system's performance was not sufficient to meet the ASX's requirements for speed and efficiency.
Security vulnerabilities: The system was found to be vulnerable to cyberattacks and data breaches.
Lack of interoperability: The system was not compatible with other systems used by the ASX's participants.
Uncertain regulatory landscape: The regulatory environment for blockchain technology was still evolving, creating uncertainty for the project.

Accenture's findings painted a grim picture of the project's prospects.The report concluded that the blockchain-based system was unlikely to meet the ASX's requirements and that the project should be abandoned.The ASX ultimately accepted Accenture's recommendation and made the difficult decision to write off its $170 million investment.

The $170 Million Write-Off: A Costly Lesson

The abandonment of the CHESS replacement project has resulted in a significant financial loss for the ASX.The $170 million write-off represents a substantial amount of shareholder value and raises questions about the ASX's risk management practices.The ASX has attempted to downplay the impact of the write-off, arguing that the investment provided valuable learnings and insights into blockchain technology.However, the financial cost of the project's failure cannot be ignored.

Beyond the direct financial loss, the project's failure has also damaged the ASX's reputation and credibility.The exchange has been criticized for its poor project management, lack of clear requirements, and over-reliance on blockchain technology. Aussie stock exchange abandons blockchain plans, leaving $170M hole; Aussie stock exchange abandons blockchain plans, leaving $170M hole NovemThe CHESS replacement project was seen as a flagship initiative, and its failure has raised doubts about the ASX's ability to innovate and modernize its infrastructure.

What Went Wrong? Watch. Shop. ExploreKey Takeaways from the ASX Debacle

The failure of the ASX's blockchain project offers valuable lessons for other organizations considering adopting DLT.Here are some key takeaways:

Don't overhype the technology: Blockchain is not a silver bullet.It's important to carefully assess whether it's the right solution for the problem you're trying to solve.
Define clear requirements: Before embarking on a blockchain project, it's essential to define clear and achievable requirements.
Start small and iterate: Avoid attempting to replace complex, mission-critical systems with blockchain all at once.Start with smaller, more manageable projects and iterate from there.
Address scalability and performance concerns: Blockchain technology is still relatively immature, and scaling it to handle high transaction volumes can be challenging.
Consider the regulatory landscape: The regulatory environment for blockchain technology is still evolving, so it's important to stay informed and comply with all applicable regulations.
Focus on governance: Strong project management and governance are essential for ensuring the success of any blockchain project.
Engage with stakeholders: Consult with all stakeholders, including customers, regulators, and technology providers, to ensure that the project meets their needs.

The Future of CHESS: Upgrades and Alternatives

With the blockchain-based replacement project now scrapped, the ASX is forced to grapple with the future of its aging CHESS system.The exchange is exploring various options for upgrading or replacing CHESS, including:

Incremental upgrades to the existing CHESS system: This would involve making incremental improvements to the existing system to address its most pressing limitations.
Developing a new, non-blockchain-based replacement system: This would involve building a new system from scratch using more traditional technologies.
Outsourcing the clearing and settlement function to a third-party provider: This would involve contracting with a third-party provider to manage the ASX's clearing and settlement processes.

The ASX faces a difficult decision. XCNNUSD Aussie stock exchange abandons blockchain plans, leaving $170M hole. The blockchain-backed upgrade in the works for nearly five years has potentially cost Australia's primary exchange overUpgrading the existing CHESS system would be the least disruptive and costly option, but it would not address the system's fundamental limitations.Developing a new, non-blockchain-based replacement system would be a more ambitious undertaking, but it could provide a more modern and efficient solution.Outsourcing the clearing and settlement function would be the most radical option, but it could potentially reduce costs and improve efficiency.

Short-term fixes and long-term vision

Regardless of the path the ASX chooses, it's clear that the exchange needs to take action to modernize its clearing and settlement infrastructure.The continued reliance on 30-year-old software poses a significant risk to the Australian financial market. The long-anticipated plans by the Australian Securities Exchange (ASX) to use blockchain to bring its clearing and settlements system into the 21st century have just been canceled.In a Nov. 17 statement, ASX announced it had paused all current activities of its CHESS replacement project followingA modern, efficient, and secure clearing and settlement system is essential for ensuring the competitiveness and stability of the ASX.

Blockchain in Finance: A Reality Check

The failure of the ASX's blockchain project serves as a reality check for the financial services industry.While blockchain technology holds promise for certain applications, it's not a panacea. Aussie stock exchange abandons blockchain plans, leaving $170M hole The blockchain-backed upgrade in the works for nearly five years has potentially cost Mehmet Yigit on LinkedIn: Aussie stock exchange abandons blockchain plans, leaving $170M holeOrganizations need to carefully assess whether blockchain is the right solution for their specific needs and be prepared to address the challenges associated with its implementation.The buzz surrounding blockchain, especially in its early days, led to some inflated expectations.

Despite the ASX's setback, blockchain technology still has the potential to transform the financial services industry. This Pin was discovered by BYDFi Crypto Exchange. Discover (and save!) your own Pins on PinterestHowever, its adoption will likely be more gradual and targeted than initially anticipated.Blockchain is most likely to be successful in areas where it can solve specific problems, such as:

Supply chain finance: Tracking the movement of goods and payments along the supply chain.
Trade finance: Streamlining the process of financing international trade.
Identity management: Verifying the identities of individuals and organizations.
Cross-border payments: Reducing the cost and time associated with international payments.

The key to success will be to focus on practical applications of blockchain that deliver tangible benefits, rather than trying to shoehorn the technology into areas where it's not a good fit.

The Broader Impact on the Australian Financial Market

The ASX's decision to abandon its blockchain plans has broader implications for the Australian financial market.It raises questions about the competitiveness of the Australian exchange and its ability to innovate.The ASX is one of the world's top 20 stock exchange groups, but it faces increasing competition from other exchanges that are investing heavily in new technologies.

The failure of the CHESS replacement project could also deter other Australian financial institutions from investing in blockchain technology. According to a report published in November 2025, it appears that the Australian Securities Exchange (ASX) has abandoned its 7-year blockchain project aimed at streamlining its activities. The report, prepared by Accenture cited shortcomings that cost the country $170 million in a bid to replace the country s outdated clearing and settlementThis could put Australia at a disadvantage compared to other countries that are embracing blockchain innovation.The Australian government has been supportive of blockchain technology, but it needs to take steps to encourage its adoption in the financial services industry.

Government support and regulatory clarity

Providing clear regulatory guidance and offering incentives for blockchain innovation could help to revitalize the Australian blockchain ecosystem and ensure that the country remains competitive in the global financial market.The ASX still uses its 30-year old software to manage the average daily turnover (A$4.685 billion) and whole market capitalization (A$1.6 trillion) of one of the world's top 20 stock exchange groups. The blockchain-backed upgrade in the works for nearly five years has potentially cost Australia s primary exchange over $170 million.This points to the critical need for advancement and modernization.

What Happens Next? After a series of delays, the Australian Stock Exchange (ASX) has hit pause on a protracted project to replace its Clearing House Electronic Subregister System (Chess) with a new clearing and settlement infrastructure, based on blockchain technology.ASX's Future Strategy

The ASX now faces the challenge of charting a new course for its clearing and settlement infrastructure. Aussie stock exchange abandons blockchain plans, leaving $170M holeThe exchange needs to develop a credible plan for modernizing CHESS and ensuring that it can meet the evolving needs of the Australian financial market.This will require a clear understanding of the challenges and opportunities facing the ASX, as well as a willingness to embrace new technologies and approaches.

The ASX's future strategy should focus on the following key areas:

Developing a comprehensive technology roadmap: This roadmap should outline the ASX's plans for upgrading or replacing CHESS, including timelines, milestones, and key performance indicators.
Investing in talent and expertise: The ASX needs to attract and retain skilled professionals who can design, develop, and implement new technologies.
Collaborating with industry stakeholders: The ASX should work closely with its participants, regulators, and technology providers to ensure that its plans meet their needs.
Embracing innovation: The ASX should be open to exploring new technologies and approaches, including blockchain, artificial intelligence, and cloud computing.

By focusing on these key areas, the ASX can rebuild its reputation and credibility and ensure that it remains a leading player in the global financial market.

Conclusion: Lessons Learned and the Path Forward

The Australian Stock Exchange's (ASX) abandonment of its blockchain plans, resulting in a $170 million loss, serves as a cautionary tale about the complexities and challenges of implementing emerging technologies in large-scale financial systems. Australia s stock market operator has abandoned plans to rebuild its software platform using blockchain technology, marking a significant rejection of the once-celebrated concept that gainedWhile the initial vision of a blockchain-powered CHESS replacement system was promising, the project ultimately succumbed to a combination of overly ambitious goals, technical difficulties, and governance issues. Posted by u/Cointelegraph_news - 1 vote and no commentsThe key takeaways from this experience include the importance of clear requirements, realistic expectations, and strong project management when adopting new technologies.The incident underscores that blockchain, while potent, isn't a universal solution and requires careful evaluation before implementation. ASX is still using its 30-year old software to manage the average daily turnover (A$4.685 billion) and whole market capitalization (A$1.6 trillion) of one of the world's top 20 stock exchange groups.Moving forward, the ASX must now focus on developing a robust and sustainable plan for modernizing its clearing and settlement infrastructure, considering both incremental upgrades and innovative technologies. Australian stock exchange officially abandons blockchain plans: Report The Australian securities exchange abandons blockchain-based software rebuild in a rejection of the once-celebrated technology. AustraliaThe future of the Australian financial market depends on it. Aussie stock exchange abandons blockchain plans, leaving Coin SurgesAre you an investor concerned about the ASX's modernization? The Australian Securities Exchange (ASX), that has spent around $170 million (roughly Rs. 1,387 crore), in a blockchain revamp following an independent review from Accenture. The result of this consultation showed significant challenges with the design solution that the ASX had been working on.Contact your broker to learn more about their plans and how they are addressing the challenges.