Jack Dorsey’s Block to Become First Major Cryptocurrency to Be Listed on Australia’s ASX
Jack Dorsey’s Block will list on the Australian Securities Exchange on January 20 after its merger with buy-now-pay-later startup Afterpay.
According to the ASX’s Group Executive of Listings, the action is a notable first for a crypto-related firm to be listed in the nation and opens the way for similar companies to be listed on the exchange in the future.
The newly combined Block, previously Jack Dorsey’s Square (SQ), and buy-now-pay-later business Afterpay, is set to begin trading on the Australian Securities Exchange (ASX) later this month, marking the bourse’s first listing of a cryptocurrency-related company.
Following Square’s December rebranding as Block Inc, the financial services business said last Friday that it had acquired Australia’s Afterpay and had completed a month-long clearance process with the Bank of Spain.
The combined firm is set to begin trading on the ASX on January 20 under the ticker (SQ), with Afterpay (APT) shares halted the day before. The listing is a key first for a crypto-related business in the nation, made possible by the company’s acquisition of the buy now pay later organisation.
According to a recent shareholder letter, Square, which owns the cryptocurrency peer-to-peer payment service CashApp, earned more than $1.1 billion in gross revenues in Q3 2021. Buy now pay later businesses have grown in popularity in recent years in Australia, offering clients the option of paying for products and services in instalments rather than in whole up front.
Caroline Bowler, CEO of Australian cryptocurrency exchange BTC Markets, told Blockworks that the decision was a positive development for the ASX and the local blockchain community.
“The industry here has permanently advanced,” Bowler said. “Fortunately for the ASX, this area contains a sizable number of high-quality Australian firms. This is a chance for the exchange to establish itself as a true market leader in the industry.”
According to Max Cunningham, Group Executive of Listings at the ASX, the exchange was developing a framework for more blockchain-based firms to launch by the middle of this year.
“We are making progress, and our objective is to provide investment-grade possibilities in a variety of crypto asset classes to the ASX in the next months and years,” Cunningham said.
Cunningham also said that his exchange intended to guarantee that cryptos entered the regular market with a “proper degree of maturity and security,” according to the newspaper.
Additionally, the ASX has been working to replace its ageing Clearing House Electronic Subregister System with a blockchain-based system, which is now under development and is scheduled to be operational within the next two years.
Square’s stock was down 5.86 percent at the conclusion of the US daily closing bell, while Afterpay’s stock was down 7.74 percent at press time.
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