ASX chief notes the goal is to attract more investment opportunities in the crypto-asset class to the exchange.
More businesses and companies with ties to the crypto ecosystem are likely to seek listings on the Australian Securities Exchange (ASX) as the sector continues to expand, says ASX CEO Dominic Stevens.
Stevens believes cryptocurrencies should make up a larger portion of the stock market’s future listings.
Beyond listings by crypto-focused companies such as Block (formerly Square) and exchange-traded funds (ETFs), ASX is focusing on spot ETFs for major cryptocurrencies like Bitcoin and Ethereum, the Sydney Morning Herald reported.
“I think as the industry matures, you could see listings of companies similar to Square in the future, but we protect the quality of companies on our market and this is a very fast-changing space,” he observed.
Stevens, who announced he will step down from the exchange later this year, also said there is still considerable work to be done across the broader crypto landscape in relation to consumer protection.
While participants in the sector have created vast wealth, issues such as hacks and other security disruptions continue to plague the crypto ecosystem, he noted.
Crypto companies offer diversification
The ASX chief said technology companies will make up a significant part of the index as valuations rise for crypto firms and SPACs.
He added that ASX is well positioned and likely to benefit from an inflow of companies as the technology sector becomes an even larger component of the global equity market.
This approach forms part of the exchange’s broader diversification strategy as it looks to compete with markets in the US and Asia. According to Stevens, it would be a mistake not to pay attention to the growing crypto-related ecosystem as it prepares for significant expansion in the coming years.
On January 20, Jack Dorsey’s Block debuted on ASX following its merger with Afterpay. The listing prompted observers to suggest the move could open the floodgates for many more blockchain-driven technology companies to seek listings.