The Stock Exchange of Hong Kong (SEHK) is looking to blockchain as it begins work on a next-generation transaction settlement system.

The disclosure came during comments given by SEHK chief executive Charles Li, who spoke during a media luncheon earlier today.

In response to a question about market infrastructure changes, Li said that, in addition to retooling its trading platforms, SEHK is weighing options for upgrading its post-trade systems as well. He mapped out a three-to-four year roadmap during which the exchange would seek to both cut costs and reduce risk across the its operations.

As part of that process, SEHK is considering blockchain for possible use.

Li explained to luncheon attendees:

SEHK has been holding exploratory conversations with exchange operator Nasdaq since as early as October, according to the South China Morning Post.

Hong Kong’s central bank has also been testing the tech, noting in a November white paper that blockchain “carries enormous potential”.

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