Today Hong Kong Exchanges and Clearing (HKEX) announced plans to launch a new post-trade settlement platform, HKEX Synapse, that will leverage Digital Asset’s DAML smart contract language. The system will also be integrated with DTCC’s ITP platform. Synapse will be piloted in 2021 and go into production in Q1 2022.
No mention was made about the solution using blockchain or distributed ledger technology (DLT), and DAML can work with databases as well as numerous DLTs. “After a thorough evaluation, we believe that DAML smart contracts on centralised infrastructure provide the optimum solution,” an HKEX spokesperson told Ledger Insights via email. “We continue to think blockchain technology has exciting applications in Fintech and we would consider its use in the future.”
HKEX Synapse will be used for its Northbound Stock Connect system, which acts as a gateway for international investors to trade in mainland Chinese shares. Average daily turnover in the first three quarters of 2020 has been RMB90 billion ($13.7 billion), more than double the same period in 2019. The new solution is expected to enable even further growth.
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