HKEX launches Synapse to refine post-trade processes using DAML smart contracts amid Hong Kong’s evolving Web3 landscape. By Maxwell Mutuma 52 mins ago Updated 52 mins ago
Hong Kong Exchanges and Clearing Limited (HKEX) announced on October 4 a novel platform called “Synapse.” Designed to streamline post-trade processes, this platform will deploy smart contracts in the DAML programming language. The main goal of Synapse is to enhance operational efficiencies in the bustling world of equities settlement.
Read Also: CMCC Global Raises $100 Million for Crypto Fund in Hong Kong
HKEX Partners with DTCC for Synapse
Synapse is set to find its place in Stock Connect, an avenue created by HKEX. This channel serves international investors by giving them access to over 1,000 Mainland Chinese stocks via Hong Kong. Moreover, it’s worth noting that the average daily turnover of Northbound Stock Connect rose by 5% in the first half of 2023. Significantly, this marks a 50% increase from 2020 levels, showcasing the growing traction of Stock Connect.
Additionally, HKEX has forged a new link with Hong Kong’s Depository Trust & Clearing Corporation (DTCC). This connection comes to life through the Institutional Trade Processing (ITP) service. Hence, central matching of cross-border transactions becomes a reality. The system automatically generates settlement instructions. The Synapse platform then receives these, refining the trade confirmation workflow.
JPEX Scandal Questions Web3 Domain Safety
However, there’s more to Hong Kong’s digital transformation, under the discreet approval of China’s central administration, Hong Kong is carving a niche in the Web3 domain. Recent events include the green light for retail trading on licensed crypto exchanges in August. Yet, not all developments have been positive since the city witnessed its largest Ponzi scheme, involving the JPEX crypto exchange. An alarming $166 million of user funds have been reportedly embezzled, and investigations continue.
Best Crypto Exchanges and Apps September 2023 Must Read Top Meme Coins to Buy Now: What You Need to Know Must Read Top 10 Web3 Games To Explore In 2023; Here List Must Read
Read Also: Crypto Winter Fails to Freeze Hong Kong’s OTC Market, Chainalysis Says