Swiss Exchange SIX Obtains License To Launch Digital Token Exchange

Swiss Exchange, SIX Digital Exchange (SDX), has received the regulatory the approval to launch a digital asset marketplace utilizing DLT.

The Swiss Financial Market Supervisory Authority (FINMA) has formally given its blessing to operate a stock exchange, and also a central securities depository for digital assets in Switzerland, SIX announced.

Digital Token Exchange

This authorization allows SIX Digital Exchange to open a fully regulated, integrated trading, settlement, and custody infrastructure. This infrastructure is based on blockchain technology – 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.

SIX 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, commented:

“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, saying:

“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.”

While the Digital Exchange could provide a regulated alternative to cryptocurrency exchanges, The Swiss Exchange, is not planning 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.