Hong Kong Stock Exchange launches blockchain-based platform

Amidst a scenario of increasing digitalization of financial markets, Hong Kong Exchanges and Clearing Limited (HKEX) is not left behind. The publicly traded market operator announced the launch of an innovative blockchain-based settlement platform: HKEX Synapse.

The new tool’s main objective is to optimize operational efficiency. But not only that. It also promises to reduce the risks associated with settlement and increase transparency in the sector. And how does she intend to do this? Through the implementation of smart contracts that enhance post-trade workflows.

HKEX Synapse is not an isolated project. It is, in fact, a key part of a broader program, Stock Connect, which seeks to strengthen ties between the Hong Kong and mainland Chinese markets.

The release date is close: October 9th. And expectations are high. Glenda So, Head of Emerging Business and FIC at HKEX Group, expressed her enthusiasm for the project. “HKEX Synapse represents a significant advancement in the Stock Connect infrastructure. It will drive the next stage of growth in international participation in mainland China stock markets,” she said.

But what makes HKEX Synapse so special? The answer lies in the technology that powers it. The platform uses the open-source smart contract language DAML. This language has the unique ability to synchronize data between blockchains and centralized databases, making processes more fluid and secure.

Glenda So also highlighted the platform’s long-term vision. “In addition to improving post-trade efficiency immediately, the platform will, over time, strengthen and expand the ecosystem, benefiting both market growth and investment strategies,” she concluded.

HKEX’s initiative is a reflection of the growing trend towards integrating blockchain technology into global financial markets. With the adoption of DAML, HKEX is positioning itself at the forefront of this digital revolution.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.