The Australian Securities and Investments Commission (ASIC) has appointed a three-member expert panel to probe the collapse of the Australian Securities Exchange’s (ASX) ambitious blockchain project, which cost approximately $163.1 million.
According to a Reuters report, the panel will include former Reserve Bank deputy governor Guy Debelle, who joins as one of the key members. Rob Whitfield, a non-executive director at the Commonwealth Bank, will chair the panel, while Christine Holman, a board member at AGL and Collins Foods, has also been appointed.
The panel has been tasked with examining the root causes of the project’s failure. This includes evaluating potential shortcomings in ASX’s governance, risk management, and internal capabilities. The group is expected to deliver a comprehensive report to ASIC by March 31, 2026, detailing its findings and providing recommendations for regulatory and structural reforms.
In response to Reuters, ASX stated it welcomed the regulator’s initiative and expressed its commitment to cooperating fully and constructively with the panel throughout the course of the investigation.
What was the failed ASX blockchain project?
The Australian Securities Exchange (ASX) began its ambitious plan to overhaul its trading infrastructure—known as the Clearing House Electronic Subregister System (CHESS)—back in 2015. Spearheaded by then-CEO Elmer Funke Kupper, the ASX partnered with New York-based startup Digital Asset Holdings to develop a blockchain-based replacement for its legacy system.
Despite initial optimism, concerns soon emerged from within the project. Critics questioned the lack of widespread market support for digital assets at the time and raised doubts about whether ASX had adequately tested the scalability of Digital Asset’s technology before committing to the partnership.
Years of setbacks and internal issues ultimately led to the project’s demise. In November 2024, ASX officially scrapped the initiative, citing dysfunctional management, the product’s complexity and scalability challenges, and difficulty sourcing the necessary technical expertise. The project’s total cost was estimated between AUD 245 million and AUD 255 million (approximately USD 164 million to USD 171 million).
Reuters reported that the failure has significantly eroded public confidence in the ASX. More than a dozen brokers, stakeholders, and individuals directly involved in the initiative have since voiced strong criticism of how the project was handled.
