The ASX chief notes that the Australian stock market’s goal is to see more investment opportunities in the crypto asset class space come to the exchange.
More businesses and companies with ties to the crypto ecosystem are likely to seek listing on the Australian Securities Exchange (ASX) as the sector continues to grow, says the ASX chief executive officer Dominic Stevens.
According to Stevens, cryptocurrencies are set to be a bigger part of the stock market’s future offerings.
As well as listing crypto-focused companies like Block (formerly Square) and exchange-traded funds (ETFs), the ASX is looking towards spot ETFs for major cryptocurrencies such as Bitcoin and Ethereum, the Sydney Morning Herald has reported.
“I think as the industry matures, you may see Square-like companies listing into the future, but we’re protective of the quality of the companies on our exchange, and it is a very fast-moving space,” he noted.
Stevens, who announced he’d be exiting the exchange later this year, however, believes that there’s a lot still to be done across the broader crypto space in relation to consumer protection.
While people have created massive wealth in the sector, issues of hacks and other aspects of security breaches continue to plague the crypto ecosystem, he noted.
Crypto companies offer diversification
The ASX CEO said that technology companies will make up a large part of the index, with an uptick in listings for crypto companies and SPACs.
The ASX, he added, is in a good position to and will likely benefit more from an influx of companies as the technology sector becomes an even larger part of the global stock market.
The move is part of the exchange’s diversification as it looks to rival markets in the US and Asia. According to him, it would be a mistake not to have focused on the growing crypto-related ecosystem when it booms in the next few years.
On January 20, Jack Dorsey’s Block made its debut on ASX after its merger with Afterpay. The listing had observers noting that the move had the potential to open floodgates for many more companies powered by blockchain technology.