Tue. Sep 28th, 2021

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Swiss Exchange SIX Formally Receives Approval To Launch Digital Token Exchange

3 min read

Switzerland cleared the way for more bitcoin trading and other digital assets by authorizing a new digital stock exchange. Swiss Exchange, SIX Digital Exchange (SDX), now has the approval to launch a digital asset marketplace utilizing DLT.

Related Reading | BBVA Switzerland Launches Crypto Wallet and Investment Offerings for Retail Investors

The Exchange formally received the go-ahead from The Swiss Financial Market Supervisory Authority (FINMA) to operate a stock exchange. And also a central securities depository for digital assets in Switzerland. SIX announced this on its website on Friday.

The Digital Token Exchange Launch

This authorization enables SIX Digital Exchange to go live with a fully regulated, integrated trading, settlement, and custody infrastructure. This infrastructure is based on distributed ledger technology – blockchain – for digital securities. The system is best known for its use in maintaining an immutable list of all cryptocurrency transactions. With these licenses, the Swiss Exchange can now offer the highest Swiss standards of oversight and regulation.

The firm plans to offer stocks and bonds in the form of digital tokens once the Exchange is live.

Thomas Zeeb, Global Head, Exchanges & Member Executive Board, SIX, said “The digitalization of financial markets continues apace, and while the final shape of the market is still evolving, this is an important milestone in providing institutional investors with a safe and robust infrastructure meeting all of the core requirements of a traditional exchange and CSD infrastructure.”

He also added that the Swiss Digital Exchange approval process is an invaluable experience for SIX and the industry.

“This is an important milestone in bringing the digitalization of capital markets into the mainstream, but it is only the beginning. We will continue to work with our clients, regulators, and other stakeholders to shape the markets of the future,” he said.

Total crypto market cap on TradingView.com

Total crypto market at $2.08 Trillion | Source: Crypto Total Market Cap from TradingView.com

The Digital Exchange could provide a regulated alternative to cryptocurrency exchanges. The Swiss Exchange, however, says that it does not plan to support bitcoin and other cryptocurrencies. This move from SIX makes it one of the first major exchanges to dedicated an exchange to digital assets. The group unveiled plans for this launch in 2018. SIX did not say when it expects the new product to launch.

About The Swiss Digital Exchange

SDX is a product of The Six Group. According to its website, it is building the world’s first regulated digital market infrastructure. The Swiss Digital Exchange plans to continue to invest in building out the digital financial ecosystem. Thus, creating a global liquidity network for digital assets based on Distributed Ledger Technology.

Related Reading | Switzerland Moves Forward to Fit Cryptocurrency Into Traditional Regulations

Switzerland is a country that is friendly to crypto and blockchain. It is home to many industry companies and regulation that is sensitive to the sector. The Swiss canton of Zug has been dubbed “Crypto Valley” as cryptocurrency has become a focal point in the country.

Featured image from The Tokenist, Chart from TradingView.com

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