These days, Shanghai Stock Exchange and Shenzhen Stock Exchange have released announcements successively, stating that they will utilize blockchain technology to improve their business, thereby maintaining their competitive advantages in the increasingly diversifying and fierce financial sector. Although there are different regulatory conditions at home and abroad, and the exchanges above has yet opened digital asset trading service, they are still upbeat about the application of blockchain technology in the financial sector.
Of them, Shanghai Stock Exchange and the Insurance Asset Management Association of China will cooperate on blockchain technology to improve the insurance and pension industries, aiming to create an efficient, low-cost and more secure insurance industry via this technology. According to a report released on July 12 by Cointelegraph, this exchange published its plan on applying blockchain in securities trading, suggesting that an increasing number of large institutions adopt distributed ledger technology.
Shanghai Stock Exchange, the fourth largest exchange in the world, has partnered with several major insurance companies, including the Insurance Asset Management Association of China, Changjiang Pension Insurance Co.,Ltd and
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Shenzhen Stock Exchange also released an announcement, stating that it will work with Hangzhou HyperChain Technologies Co., Ltd (hereinafter referred to as "HyperChain Technologies") to carry out blockchain-based security management and technology research, with a view to solving technical difficulties involved in the application of blockchain technology in the securities and futures sector, such as data security, privacy protection and smart contracts.
By the end of 2017, Australian Securities Exchange released an announcement to ascertain that it will substitute its existing clearing and settlement systems with blockchain technology, making it the first exchange that really adopted blockchain technology.
Additionally, some Japanese and Korean exchanges also plan to adopt blockchain technology to optimize their core transaction infrastructures or has done so.
According to the blockchain whitepaper released by the Ministry of Industry and Information Technology of PRC, the sore point for the financial sector to develop lies in a high cross-border financial institution clearing and settlement cost.