- Swiss exchange SIX granted a license to trade digital assets.
- SDX to go live with a fully regulated, integrated trading, settlement, and custody infrastructure using DLT.
Swiss exchange SIX has been granted a license to trade digital assets using distributed ledger technology (DLT). In detail, the Swiss Financial Market Supervisory Authority (FINMA) authorized SIX digital exchange (SDX) to trade securities, such as company shares and bonds, on a digital platform.
More so, this authorization enables SDX to go live with a fully regulated, integrated trading, settlement, and custody infrastructure. This is based on distributed ledger technology for digital securities. With these licenses, SDX can now offer the highest Swiss standards of oversight and regulation.
SIX’s global head of exchanges, Thomas Zeeb, says:
“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.”
Initially, SIX set out to build a fully integrated trading, settlement, and custody infrastructure based on DLT in 2018. However, regulatory hurdles came along the way. More so, SDX has already endured some hiccups and delays along the way to winning its stock exchange license. These included the departure of its first CEO and other executives in 2019 following “strategic differences” with SIX Group.
Meanwhile, SIX said it will start onboarding financial firms around the world and exploring partnerships. This is to “create a global exchange network for digital assets, unlocking global liquidity”. Following the retail launch, SIX expressed a desire to diversify its offerings. Specifically, to suit the demands of banks, issuers, insurance firms, and institutional investors within its global network.
In addition to cryptocurrency assets, the exchange has also floated many ideas. Included is incorporating traditional stocks, exchange-traded funds, as well as tokenized commodities such as luxury cars and acclaimed works of art.