ASX Deepens Investigation into $164 Million Project Failure as Australian Regulators Establish Expert Panel: 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, which was valued at over $160 million.

According to Reuters, one of the panel members is Guy Debelle, the former deputy governor of the central bank. The panel will focus on scrutinizing the deficiencies of the Australian Securities Exchange’s blockchain project, which had an estimated cost of around $163.1 million.

Alongside Debelle, ASIC has named Rob Whitfield, a non-executive director at the Commonwealth Bank, as the chair of the panel. Christine Holman, a non-executive director of Australian companies AGL and Collins Foods, will also participate as a panel member.

ASIC has indicated that the inquiry panel is tasked with making recommendations and identifying any governance, capability, and risk management weaknesses within the ASX that may have led to the project’s failure.

Moreover, the panel is anticipated to submit its findings and recommendations to ASIC by March 31, 2026, detailing necessary regulatory actions for the investigation moving forward.

In a response emailed 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 failed ASX blockchain project?

The ASX initially launched the project to upgrade its existing trading platform, known as the Clearing House Electronic Subregister System (CHESS), back in 2015. Under the leadership of then-CEO Elmer Funke Kupper, ASX partnered with the New York-based startup Digital Asset Holdings to initiate this blockchain-focused venture.

However, concerns began to surface over time, as project participants indicated that digital assets were still lacking market support and that ASX had engaged with the New York startup without sufficiently testing the product’s scalability.

Ultimately, in November 2024, ASX made the decision to terminate the project entirely, citing “dysfunctional management, concerns about the product’s complexity and scalability, and challenges in sourcing experts for support” as the main reasons for its cancellation. The financial impact was estimated to be between 245 million AUD and 255 million AUD (approximately $164 million to $171 million).

According to Reuters, the project’s failure led to a significant loss of public trust in the stock exchange, with over a dozen brokers and market participants offering extensive criticism.