An Australian Securities Exchange (ASX) shareholder plans to seek Federal Court permission to sue certain former ASX officers and directors over alleged breaches of duty connected to its failed blockchain-based clearing and settlement overhaul.

On Wednesday, ASX said Rosherville Pty Ltd had notified the exchange that it proposes to apply for leave to commence a statutory derivative action under sections 236 and 237 of Australia’s Corporations Act. If approved, Rosherville would bring the proceedings on ASX’s behalf. 

The exchange said there were no allegations against ASX itself. It did not identify the former officials targeted, describe their alleged breaches in detail or disclose the remedies Rosherville intends to seek, while the court has not considered whether the proposed case can proceed. 

The proposed lawsuit could test whether shareholders can hold former ASX leaders accountable for overseeing one of Australia’s costliest financial-technology failures. 

Failed CHESS overhaul draws regulatory action

ASX began exploring a replacement for its Clearing House Electronic Subregister System, or CHESS, in 2016 and selected a distributed-ledger system developed with New York-based Digital Asset. In December 2017, ASX was expected to become the first securities exchange to use blockchain for its core services. 

The intended launch was repeatedly postponed. In November 2022, ASX paused the project after an Accenture review found significant problems with its design and ability to meet the exchange’s requirements. In May 2023, ASX had formally abandoned blockchain for the replacement and would consider more conventional technology. 

Related: Australia orders Cryptolink Bitcoin ATMs offline over ‘basic reporting’ failures

The Australian Securities and Investments Commission (ASIC) sued ASX in August 2024, alleging it lacked a reasonable basis for telling the market in February 2022 that the project was “progressing well” and on track for an April 2023 launch. At the time, ASIC called the episode a collective failure by ASX’s board and senior executives. 

In June 2026, ASX admitted to misleading conduct linked to the blockchain replacement project. On July 3, the Federal Court ordered the company to pay a $14.4 million penalty and $2.1 million toward ASIC’s costs, closing the regulator’s case weeks before Rosherville notified the exchange of its proposed action against former officials. 

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An Australian Securities Exchange (ASX) shareholder is seeking permission from the Federal Court to pursue a statutory derivative lawsuit targeting certain former ASX officers and directors over alleged breaches connected to the exchange’s ultimately abandoned blockchain-based clearing and settlement overhaul.

ASX said on Wednesday that Rosherville Pty Ltd has notified the exchange of its intention to apply for leave to bring the case under sections 236 and 237 of Australia’s Corporations Act. If the court grants leave, the proceedings would be brought on ASX’s behalf. ASX also emphasized that the proposed action does not include allegations against the exchange itself, and it provided limited detail about who would be named, what duties were allegedly breached, or what remedies Rosherville would seek.

Key takeaways

• Rosherville wants the Federal Court’s leave to file a statutory derivative action on ASX’s behalf under Australia’s Corporations Act.
• ASX says the proposed claims target former officers and directors, not the exchange, but the court has not yet considered whether the case can proceed.
• The litigation follows a broader regulatory reckoning over ASX’s CHESS replacement project, including findings by ASIC.
• ASIC’s case against ASX was resolved earlier in 2026 with a penalty and cost order, potentially setting the stage for shareholder-focused accountability efforts.

Why the proposed action could matter for corporate governance

Statutory derivative actions are designed to allow shareholders, with court approval, to pursue claims on behalf of a company when directors or officers may have breached duties owed to that company. Here, Rosherville’s proposed case would test how far that accountability can extend for board and senior leadership decisions related to one of Australia’s most expensive financial-technology failures.

While ASX did not specify which former officials Rosherville plans to name or what conduct it alleges, the core premise is straightforward: that responsibility for overseeing the CHESS replacement project may not have been adequately discharged. For investors, the practical significance is that litigation risk can reach beyond the corporate entity itself and toward the individuals who managed or governed the decisions leading to regulatory and operational consequences.

At the same time, the court has not yet examined whether the proposed suit meets the legal threshold to move forward, meaning there is still uncertainty about the scope and viability of the claims.

From CHESS replacement to abandoned blockchain plans

The dispute traces back to ASX’s long-running attempt to replace its Clearing House Electronic Subregister System (CHESS). According to earlier reporting cited in the record, ASX began exploring a replacement in 2016 and selected a distributed-ledger system developed with New York-based Digital Asset.

In December 2017, ASX was widely expected to use blockchain for core services, a prospect described at the time as a first for a securities exchange. But the project repeatedly slipped. In November 2022, ASX paused the initiative after an Accenture review identified significant problems with the design and with meeting ASX’s requirements.

Then, in May 2023, ASX formally abandoned blockchain for the replacement, saying it would consider more conventional technology instead. The progression—from early expectations of a groundbreaking launch to a pause, then abandonment—became the backdrop for subsequent regulatory scrutiny.

ASIC’s case against ASX and the question of board accountability

The shareholder effort comes after ASIC took action against ASX itself. In August 2024, the regulator sued the exchange, alleging it did not have a reasonable basis for telling the market in February 2022 that the project was “progressing well” and on track for an April 2023 launch. ASIC later characterized the episode as a collective failure by ASX’s board and senior executives.

Later developments in 2026 narrowed the regulator’s focus to misleading conduct tied to the CHESS replacement effort. In June 2026, ASX admitted to misleading conduct related to the project. On July 3, 2026, the Federal Court ordered ASX to pay a $14.4 million penalty and $2.1 million toward ASIC’s costs, effectively bringing ASIC’s case to an end weeks before Rosherville notified ASX of its intention to seek leave for a derivative action against former officials.

Although those steps were not the same as a case against individuals, the sequencing is notable. ASIC’s enforcement action concluded against the company, but the shareholder proposal suggests some investors believe the responsibility for the issues may also sit with former decision-makers at the governance and management level.

What investors should watch next

Rosherville’s application is not yet a filed lawsuit; it hinges on the Federal Court granting leave to commence the statutory derivative action. That process will be central for determining whether the allegations can proceed, who qualifies as a potential defendant, and what legal theories and remedies the shareholder is attempting to pursue on ASX’s behalf.

In the meantime, the case is likely to remain closely tied to how courts interpret directors’ and officers’ duties in complex technology transitions—especially where public statements to the market and later regulatory outcomes are in the background. The next concrete milestone for market participants will be whether the Federal Court approves the leave request and, if it does, how the claims are framed.

Bank of Montreal has placed XRP-linked fund positions inside its massive investment portfolio, according to a new regulatory filing. The Canadian lender submitted a new Form 13F-HR report to the U.S. Securities and Exchange Commission, confirming the token’s presence for the first time. BMO’s total reportable holdings exceeded $303 billion at the close of June 2026, making the bank one of the largest institutions to disclose crypto-linked assets this quarter.

BMO’s XRP Fund Positions

The filing lists 323 shares of the Rex Osprey XRP ETF, a spot fund tied directly to the token’s price. It also reports 20 shares of the ProShares Ultra XRP ETF, a leveraged product designed for short-term moves. Both positions sit within BMO’s much larger equity and fund portfolio, and neither represents a significant share of total assets.

BMO did not buy XRP tokens directly on any cryptocurrency exchange, and it avoided that route entirely. Instead, the bank used regulated U.S. exchange-traded fund infrastructure to gain exposure, which kept the transaction within familiar securities rules. Regulated ETFs also let large institutions report holdings through standard filing channels, so compliance teams face fewer complications.

This structure additionally removes the need for BMO to store or secure the underlying token itself. Fund managers behind the ETFs handle custody, settlement, and daily price tracking on the bank’s behalf. As a result, BMO gains market exposure while transferring operational and security risk to a third party.

National Bank of Canada Set an Earlier Precedent

National Bank of Canada disclosed similar XRP exposure earlier in the same reporting period, and its filing arrived before BMO’s. The bank reported 3,848 shares of the Bitwise XRP ETF, a spot product tracking the token’s market price directly. That stake carried an approximate value of $330,000 at the time of filing.

Together, the two Canadian banks now share a nearly identical approach to digital asset exposure. Each institution enters the market through transparent, SEC-regulated fund vehicles rather than direct token purchases. Neither bank holds XRP on its own balance sheet outside these fund wrappers, and both rely on third-party custody.

This shared pattern points to a wider shift among Canada’s largest financial institutions. Big banks increasingly treat XRP funds as a small but manageable portfolio addition rather than a speculative outlier. Further disclosures from other Canadian lenders could follow in upcoming quarterly filings, given this emerging pattern.

A New Group of XRP Holders Emerges

Goldman Sachs previously held XRP positions worth more than $150 million, and that stake formed around the turn of 2025 and 2026. The firm reduced or fully exited those holdings by the summer of 2026, according to filing data. This shift effectively locked in profits and marked the end of Goldman’s early XRP position.

A newer group of midsize asset managers and family offices has since filled that space. Arax Advisory Partners, Gerber, Vista Finance, and Gallacher Capital now appear among the reported XRP fund holders. Each firm builds its own combination of spot and leveraged token exposure across different funds.

These newer holders typically split capital between traditional spot products and short-term leveraged instruments. The Franklin XRP Trust and Bitwise XRP ETF represent the spot side of that split. The ProShares Ultra XRP ETF, meanwhile, adds leveraged and more volatile exposure to the same overall strategy.

Because 13F filings carry a 45-day reporting delay, they offer only a snapshot rather than a live position update. Positions can change significantly between the reporting date and public disclosure, so current holdings may already differ. Even so, BMO’s filing confirms that XRP now sits on another major bank’s balance sheet, alongside a growing list of regulated institutions.

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Slower XRP ETF inflows have investors exploring alternative digital asset strategies, with EX DeFi promoting cloud mining as a way to participate in crypto.

Since August 2026, seven U.S. spot XRP ETF have collectively locked up approximately 992.5 million XRP and attracted over $1.5 billion in inflows. Despite continued institutional capital entry, the XRP price has largely fluctuated between $1.01 and $1.12; this performance has fallen short of market expectations, further fueling investor caution.

While nearly 1 billion XRP is a substantial figure, it represents only about 0.99% of the total 100 billion XRP supply. By comparison, Bitcoin ETF held a larger share of the circulating supply at their peak. Furthermore, if ETF issuers acquire XRP primarily through over-the-counter (OTC) markets or large holders rather than buying directly from spot exchanges, the impact of these inflows on immediate buying pressure in the open market may be limited.

As spot ETF continue to see inflows, the XRP price has failed to rise in tandem—even dipping below $1 at one point to hit a recent low—resulting in a contraction of market capitalization. This disconnect between price performance and ETF inflows has led some XRP holders to worry about potential further price declines and to re-evaluate their investment strategies.

Meanwhile, an increasing number of XRP investors, concerned about price pullbacks, are exploring alternative ways to generate returns. They seek to mitigate the impact of short-term volatility while keeping an eye on XRP long-term prospects and generating consistent additional income from their holdings.

Against this backdrop, the EX DeFi cloud mining platform is attracting growing investor interest. Through cloud mining and yield aggregation mechanisms, users can explore diversified sources of digital asset returns, enhancing the utility of their assets without relying solely on price appreciation.

Despite slowing ETF inflows, institutional demand for allocation remains a focus

Although XRP ETF inflows have recently slowed, institutional interest in long-term XRP allocation remains robust. XRP is currently trading in the $1.01–$1.12 range, a price zone and subsequent capital flow pattern that the market is monitoring closely.

Meanwhile, regulatory policy remains a key factor influencing institutional capital inflows into XRP. As regulatory developments — such as the CLARITY Act — progress, further clarification of the digital asset regulatory framework could improve the environment for institutional participation in XRP ETFs, potentially re-accelerating capital inflows.

JPMorgan and Standard Chartered have previously projected potential capital inflows for XRP ETF. Should the regulatory environment continue to improve and institutional participation rise, there remains significant potential for growth in XRP ETF inflows.

Increased XRP volatility makes EX DeFi cloud mining an attractive option for investors

Amidst recent heightened volatility in XRP prices, a growing number of XRP holders are turning to the EX DeFi cloud mining platform. They seek to explore diversified yield-generating models while maintaining their long-term digital asset holdings.

Unlike high-volatility leveraged trading or strategies that rely solely on asset price appreciation, EX DeFi cloud mining offers a more convenient way to engage with digital assets. Users do not need to deploy specialized mining hardware or bear maintenance costs; instead, they simply select a hashrate contract that suits their needs to participate in mining services.

This model allows users to explore alternative applications for their digital assets while keeping an eye on XRP’s long-term market performance, thereby reducing reliance on a single strategy based on price appreciation.

About EX DeFi

Founded in 2021 and headquartered in the UK, EX DeFi operates in compliance with European regulatory frameworks such as MiCA and MiFID II. The platform continuously enhances transparency, operational standards, and user protection mechanisms, striving to provide a seamless and convenient digital asset service experience.

The platform employs a multi-layered security architecture, featuring:

Annual financial and security compliance audits conducted by PwC;

Digital asset custody insurance provided by Lloyd’s of London;

Enterprise-grade cybersecurity protection from Cloudflare and McAfee®;

Multi-layer encryption architecture, AI-driven risk management, and two-factor authentication (2FA).

How ​​to earn daily rewards with EX DeFi

1. Register an Account

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3. Select a Mining Contract

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Examples of popular mining contracts

BTC (Beginner Trial Contract): Investment $100, Duration: 2 days, Daily Return: $4, Total Profit: $100 + $8

DOGE (Golden Shell Mini-Doge Pro): Investment $500, Duration: 6 days, Daily Return: $6.5, Total Profit: $500 + $39

BTC (Canaan-Avalon-A1466): Investment $1,000, Duration: 10 days, Daily Return: $13.4, Total Profit: $1,000 + $134

LTC (Bitmain Antminer L7): Investment $5,000, Duration: 20 days, Daily Return: $73.5, Total Profit: $5,000 + $1,470

BTC (Bitmain S19K-Pro): Investment $10,000, Duration: 30 days, Daily Return: $161, Total Profit: $10,000 + $4,830

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Conclusion

Although capital inflows into XRP ETF have slowed recently, institutional allocation demand, progress in regulatory policies, and the development of the XRP ecosystem remain key factors driving market attention. Short-term price movements may still be influenced by capital flows, the macroeconomic environment, and market sentiment.

For long-term XRP holders, while paying attention to ETF fund flows and price changes, exploring more diversified ways to participate in digital assets has also become an important approach to managing market volatility. EX DeFi cloud mining service provides investors with a more convenient way to participate in the digital asset ecosystem and obtain stable passive income.

Visit the EX DeFi website today to start the cloud mining journey and earn up to $10,000 in stable passive income daily.