ASX Broadens Investigation into $164 Million Project Failure Amid Formation of Expert Panel by Australian Regulators: Report

The Australian Securities and Investments Commission has appointed a former deputy governor of the central bank to 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 is Guy Debelle, 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 about $163.1 million.

Alongside Debelle, ASIC has chosen Rob Whitfield, a non-executive director at the Commonwealth Bank, to serve as the chairperson of the panel. Also included is Christine Holman, a non-executive director at Australian firms AGL and Collins Foods.

ASIC has indicated that the inquiry panel will be responsible for offering recommendations and identifying any governance, capability, and risk management issues within the ASX that may have played a role in the project’s failure.

Moreover, the panel is expected to deliver its findings and recommendations to ASIC by March 31, 2026, including key regulatory measures for the ongoing investigation.

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

What was the unsuccessful ASX blockchain project?

The ASX launched the project in 2015 to upgrade its existing trading system, 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 startup Digital Asset Holdings to initiate this blockchain venture.

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

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

Reuters noted that the project’s failure led to a significant erosion of public trust in the stock exchange, with numerous brokers and market participants expressing considerable criticism.