Blockchain Failure at Australian Stock Exchange Shakes Market Trust

The Australian stock exchange (ASX) planned to rebuild its software using blockchain technology.

In May 2021, the head of securities and payments for ASX, Tim Hogben, said that 96% of the software was ready for testing.

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In November 2021, ASX abandoned the project citing difficulties with management, scalability and complexity, and a lack of experts to support it.

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An review by Accenture found that the rebuild was only 63% complete and almost half of the code needed to be rewritten.

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The failure of the project has shaken trust in ASX and raised questions about the promises and reality of blockchain technology.

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Market participants estimate that they spent a similar amount as ASX on the project, including on software upgrades, employee hours, and airfares.

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ASX began exploring the possibility of using blockchain technology in 2015, and signed a contract with Digital Asset Holdings in early 2016.

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ASX raised its stake in Digital Asset to 8.5%.

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The project suffered from scope creep and a lack of clear goals.

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ASX's new CEO, Helen Lofthouse, commissioned the review that led to the project's abandonment.

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ASX apologized for the failure at a parliamentary hearing, but denied misleading the market or regulators.

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The project's failure is one of the biggest "stuff-ups" seen in financial markets globally.

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