ASX Broadens Inquiry into $164 Million Project Failure After Australian Regulators Establish Expert Panel: Report

The Australian Securities and Investments Commission (ASIC) has appointed a former deputy governor of the central bank to join a three-member expert panel tasked with investigating the ASX’s unsuccessful blockchain initiative, valued at over $160 million.

As reported by Reuters, one of the panel members, Guy Debelle, is the former deputy governor of the central bank. The panel will focus on assessing the shortcomings of the Australian Securities Exchange’s blockchain project, which incurred an estimated cost of around $163.1 million.

In addition to Debelle, ASIC has appointed Rob Whitfield, a non-executive director at the Commonwealth Bank, as the chair of the panel. Also joining them is Christine Holman, another non-executive director representing AGL and Collins Foods.

ASIC has indicated that the panel will provide recommendations and pinpoint any governance, capability, and risk management concerns within the ASX that may have played a role in the project’s failure.

Moreover, the panel is expected to submit its findings and recommendations to ASIC by March 31, 2026, detailing crucial regulatory actions for the ongoing investigation.

In a statement to Reuters, ASX expressed its support for the regulator’s efforts and pledged to work “constructively” with the panel throughout the inquiry.

What was the failed ASX blockchain project?

The ASX launched the project in 2015 to modernize its trading infrastructure known as the Clearing House Electronic Subregister System (CHESS). Under the leadership of then-CEO Elmer Funke Kupper, ASX collaborated with the New York-based company Digital Asset Holdings to pursue this blockchain initiative.

As the project progressed, concerns arose among participants, who claimed that digital assets lacked adequate market support and that ASX had partnered with the New York startup without properly evaluating the product’s scalability.

Ultimately, in November 2024, ASX decided to terminate the project entirely, citing “dysfunctional management, complexity and scalability issues, and difficulties in obtaining expert support” as the main reasons for its cancellation. The financial impact was estimated to be between 245 million AUD to 255 million AUD (approximately $164 million to $171 million).

According to Reuters, the project’s failure significantly undermined public confidence in the stock exchange, resulting in substantial backlash from various brokers and market participants.