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

The Australian Securities and Investments Commission (ASIC) has enlisted a former deputy governor of the central bank to join a three-member expert panel responsible for investigating the ASX’s unsuccessful blockchain project, which was valued at more than $160 million.

As reported by Reuters, one of the panelists is Guy Debelle, the ex-deputy governor of the central bank. The panel will focus on assessing the shortcomings of the Australian Securities Exchange’s blockchain initiative, 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, to serve as the chairperson of the panel. Christine Holman, also a non-executive director, is a member representing AGL and Collins Foods.

ASIC has indicated that the panel’s role will involve providing recommendations and pinpointing any governance, capability, and risk management challenges within the ASX that may have led to the project’s downfall.

Moreover, the panel is expected to present its findings and recommendations to ASIC by March 31, 2026, which will detail key regulatory measures for the ongoing investigation.

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

What was the failed ASX blockchain project?

The ASX launched the project in 2015 to update its existing 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 firm Digital Asset Holdings to initiate this blockchain endeavor.

As the project progressed, concerns arose among participants, who claimed that digital assets did not receive adequate market backing, and that ASX had engaged the New York startup without properly evaluating the product’s scalability.

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

According to Reuters, the project’s failure substantially eroded public confidence in the stock exchange, resulting in significant criticism from numerous brokers and market participants.