According to CoinDesk, the Hong Kong Stock Exchange's Stock Connect system, which links Hong Kong's stock markets with those in mainland China, is set to receive an upgrade through the incorporation of blockchain technology. The upgraded Stock Connect, known as Synapse, will utilize smart contracts to execute post-trade workflows and reduce settlement risk. Synapse can simultaneously create settlement instructions for all parties along the settlement chain, enabling concurrent processing and providing near-instantaneous status updates to all parties involved in the trade. This is particularly important when connecting traders in two different markets.

The average daily turnover of the Stock Connect reached $15.302 billion (109.3 billion RMB) in the first half of 2023, representing a 5 percent increase from the previous year and a 50 percent increase from 2020 levels. In Australia, the ASX has been advised to adopt blockchain technology to replace its settlement system called CHESS, as reported by the Australian Financial Review last year. Synapse is set to launch in Hong Kong on October 9.