Australian Securities Exchange takes step towards tokenized asset trading

Australian Securities Exchange takes step towards tokenized asset trading

 

Following successful proof-of-concept research sponsored by the Digital Asset investment firm Zerocap, companies listed on the Australian Securities Exchange (ASX) may very soon be able to trade tokenized bonds, equities, funds, or carbon credits, according to a report by Cointelegraph.

 

As part of an experimental program, Melbourne-based Digital Asset investment firm Zerocap informed Cointelegraph on Monday that it had utilized Synfini to magnificently bridge over its custody infrastructure onto the investment platform, enabling the trading and clearing of Ethereum-based tokenized assets, Cointelegraph noted.

 

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The pilot is a component of Synfini, an ASX settlement plan based on distributed ledger technology (DLT) that was introduced in November 2021. This gives users access to the ledger, data hosting, and distributed ledger technology (DLT) infrastructure of ASX, allowing them to build blockchain applications on top of it.

 

 

“It happened last year”, according to Ryan McCall, co-founder, and CEO of Zerocap, and “it garnered a lot of attention” among the institutional clients, notably from enterprises looking into ways to tokenize and trade bonds and debentures, funds, or carbon credits. “Thinking beyond Bitcoin, Ethereum, and other Cryptocurrency Assets, the tokenization of corporate bonds, equities, real-estate, carbon credits, private equity, and anything that’s essentially illiquid, there’s a strong value addition here that we can essentially tokenize any asset and bridge that into the ASX ecosystem,” McCall added.

 

According to McCall, enterprises dealing with particularly “opaque and difficult to access markets” like corporate bonds and carbon credits are looking for effective methods to reduce costs, shorten the issuing process, and broaden shareholder access via tokenized offerings.

 

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However, it is important to note that Synfini is a separate project from ASX is blockchain-based CHESS system replacement project, which has not yet been put into trial due to years of technical difficulties.

 

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McCall further went on to say that since Zerocap has recently fulfilled the requirements for regulatory approval, it may soon be preparing to officially introduce asset tokenization and trading services via Synfini to institutional clients, as noted by Cointelegraph.