Hong Kong Exchange and Clearing Limited(HKEX) has reportedly joined with Digital Asset to improve the trading process using Blockchain. The news surfaced when HKEX’s CEO Charles Xioajia Li discussed the exchange’s plan at a tech event in Hong Kong.

The main motive behind this partnership is to improve the efficiency of the post-trading scenarios. According to the company, the traders have to go through tight settlement cycles in Mainland China, which is very troublesome. As blockchain will be used, traders will get instant settlements and more safety as the data will be stored in immutable blocks.

HKEX developed the prototype for Stock Connect programme with China using Digital Asset platform and smart contract modelling. Hence, the prototype will ensure faster post-trade process and reduction in settlement risks for traders.

Interestingly, Li has also explained that using DLT Technology can bring over many reformations and evolutions in the trading field. The problems faced by traders like costly and time-taking settlements can be easily secured using blockchain.

From the very beginning, HKEX has been exploring the various usage of blockchain so as to leverage from their benefits. Earlier, the exchange has also announced plans on setting up a private market where startups can acquire blockchain through shared registration. Furthermore, they can also make Initial Public Offerings and get all the regulations from a financial regulatory.

With this initiative, it is definitely clear that HKEX is hopeful to expand its demeanour by using the advanced technology to its maximum benefit.