- ASIC forms a three-member expert panel to investigate the ASX’s failed blockchain project intended to replace the CHESS settlement system.
- The project, scrapped in 2024 after nearly a decade in development, cost over AUD 250 million and raised concerns about governance and risk oversight.
- The panel’s report, due by March 31, 2026, will identify systemic flaws and recommend regulatory actions.
The Australian Securities and Investments Commission (ASIC) has deepened its inquiry into the Australian Securities Exchange (ASX) by appointing a high-profile panel to examine the collapse of its blockchain-based upgrade to the CHESS platform.
Launched in 2015 with Digital Asset Holdings, the blockchain project was meant to modernize ASX’s clearing and settlement operations. However, it unraveled amid technical limitations, misaligned stakeholder expectations, and operational missteps.
ASX Under Fire: ASIC Launches Probe Into $164M Blockchain Project Collapse
The panel includes some of Australia’s most respected financial figures. Rob Whitfield, former risk officer at Westpac, brings deep experience in financial oversight. Christine Holman, known for her governance roles at AGL and Collins Foods, adds a commercial boardroom lens, while Guy Debelle, former deputy governor of the Reserve Bank of Australia, introduces a macroeconomic perspective vital for assessing institutional accountability.
Initially hailed as a technological leap, ASX’s blockchain project suffered from scalability issues and poor planning. Insiders criticized the early reliance on Digital Asset Holdings without adequate testing. The project’s growing complexity and lack of developer expertise eventually led to its abandonment, after incurring costs estimated between AUD 245–255 million.
The failure has significantly damaged ASX’s credibility, with brokers, investors, and regulatory authorities questioning its commitment to transparency and innovation. The debacle has triggered broader debates about blockchain integration in financial markets, emphasizing the need for robust project governance in highly regulated sectors.
ASIC’s investigation marks a turning point for tech adoption in Australia’s financial infrastructure. It sends a message to institutions that innovation must be grounded in sound governance and realistic execution. Depending on the panel’s findings, ASX may face heightened regulatory scrutiny or enforced structural reforms.
The ASIC-led investigation into ASX’s failed blockchain overhaul serves as a sobering reminder that digital innovation demands not only ambition but also accountability and due diligence.
“The goal is not to be ahead of the curve, but to stay on the track.” — Guy Debelle, Former Deputy Governor, RBA
