How popular is blockchain? 10 major exchanges have already participated in blockchain technology research

We often report on blockchain using the phrase “banks are embracing blockchain,” but this term often obscures the fact that many financial institutions are actively testing this emerging technology.

For example, DTCC, a major U.S. clearing house, facilitates billions of dollars in transactions each year. Visa, a global credit card processing network, is one of only a few non-bank institutions to have launched a pilot program. That said, some financial institutions are more active in the blockchain space than others.

Large stock and commodity exchanges have been actively investigating blockchain through trials and investments. For example, Nasdaq even launched its blockchain project Linq last fall. Linq can facilitate the trading and tracking of private company stocks, and its early trials are conceived to study how to use blockchain to expand exchanges into new asset classes.

Although the use cases vary, 10 major stock and commodity exchanges have expressed their enthusiasm for blockchain technology. They include:

1. Australian Stock Exchange (ASX)

ASX is one of the most ambitious companies when it comes to blockchain applications, having invested more than $10 million in startup Digital Asset Holdings in January.

In conjunction with the investment, the ASX also revealed that in addition to the blockchain trial, it will also establish a new post-trade settlement system that will be developed by digital asset companies using distributed ledger architecture.

However, progress on the project may have been overshadowed by debate within the ASX since January. In March, following the resignation of ASX CEO Elmer Funke Kupper, Australian news media began to speculate that the ASX’s blockchain project might be in doubt, even though the exchange had reaffirmed its support for blockchain trials.

Other evidence suggests the ASX is not as familiar with the emerging technology as it claims: DTCC CEO Michael Bodson, for example, quipped at a conference this month that six months ago, most of the exchange’s senior leadership didn’t know about blockchain.

2. Chicago Mercantile Exchange Group (CME Group)

CME is a founding member of the Post-Trade Distributed Ledger Working Group and has become very active in the industry through its investment arm CME Ventures.

CME is unique among its peers in that it pursues a diversified investment strategy in the industry and has participated in the financing of Ripple, Digital Currency Group and Digital Asset Holdings, all of which have brought major turning points to the industry.

3. German Stock Exchange

Deutsche Boerse, operator of the Frankfurt Stock Exchange in Germany, has become another contender on this list, having participated in Digital Asset Holdings’ funding round in January.

However, unlike the ASX, which is also involved, the German stock exchange has rarely expressed support for blockchain technology.

In a rare interview with CoinDesk in February, the German stock exchange said it was working on several blockchain-related proof-of-concepts, though it has yet to release any findings or test results.

4. Dubai Multi Commodities Centre (DMCC)

Blockchain activity in the Middle East has been scarce until the recent formation of the Global Blockchain Council, a coalition of 32 startups, financial firms and tech giants formed to examine blockchain technology and its implications.

Among those members is the Dubai Multi Commodities Centre (DMCC), a special economic zone and commodities hub that oversees trading of precious metals and other tangible commodities.

DMCC announced in February that it was working with bitcoin startup BitOasis on a blockchain technology trial, which is focused on exploring how blockchain technology can improve the onboarding process for new employees.

5. Japan Exchange Group (JPX)

The Japan Exchange Group, one of the most active stock market operators in Asia, announced in February that it was interested in the blockchain industry and had partnered with IBM to become a user of its blockchain-as-a-service (BaaS).

At the time, reports indicated that the Japan Exchange Group was working on a proof-of-concept to investigate how blockchain technology could be used to create a new system for trading illiquid assets. A report on any progress would be released later this year.

Earlier this month, Japan Exchange Group also announced that it was collaborating with Nomura Research Institute (NRI) to study how blockchain technology can be applied to the securities market.

6. Korea Stock Exchange

The Korea Exchange, South Korea’s only stock exchange, is the latest on this list to join the blockchain research effort, having announced that it will be launching an over-the-counter trading platform using blockchain technology.

In a statement to local media, the South Korean exchange said it hopes blockchain technology can help reduce costs.

7. London Stock Exchange (LSE)

The London Stock Exchange is also a founding member of the Post-Trade Distributed Ledger Working Group and is one of the most active, yet quiet, companies when it comes to blockchain experimentation.

The working group is the first to be formed after R3’s CEV banking consortium, and shows that large financial institutions are looking to leverage collaborative models outside of the R3 framework to conduct blockchain testing.

Since then, many large financial firms have begun working on private proofs of concept as well as larger tests.

In addition, LSE, Kouvola Innovations and Japan Exchange Group are among the first customers of IBM BaaS.

8. Nasdaq Stock Exchange

When it comes to blockchain technology testing, Nasdaq is probably the one that has made the most progress. When Nasdaq launched its private stock trading platform Linq in 2015, it became the first financial institution to apply the concept of blockchain to practice.

The launch of Linq is big news, advancing the development of blockchain technology, with Nasdaq announcing a partnership with blockchain solutions provider Chain while also making it possible for its internal experts to discuss blockchain technology openly.

In 2016, Nasdaq continued this trend and announced that they were working with Estonia's Nasdaq OMX Tallinn Stock Exchange to conduct a test to explore the use of blockchain to reduce investors' friction in participating in the shareholder voting process.

9. New York Stock Exchange (NYSE)

The New York Stock Exchange (NYSE) was one of the first companies to express interest in blockchain, making two major announcements in 2015, both of which were related to Bitcoin.

In January 2015, NYSE invested in Bitcoin service company Coinbase (Coinbase received a total of $75 million in Series C funding). At the time, NYSE Chairman Jeffrey Sprecher said that this investment was a sign of our confidence in the widespread use of digital currency.

The NYSE will continue to launch a bitcoin price index that will be based on trading data from the Coinbase exchange.

10. TMX Group

The Toronto Stock Exchange Group has also been tight-lipped about its interest in blockchain technology.

In March of this year, TMX Group appointed Ethereum co-founder Anthony Di Iorio as Chief Digital Officer, which is likely a sign of their interest in blockchain technology.

Meanwhile, TMX Group has indicated that they are in the early stages of developing a blockchain strategy and that they may begin testing the technology soon.

Original article: http://www.coindesk.com/10-stock-exchanges-blockchain/
By Pete Rizzo
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/10-stock-exchanges-blockchain)