New Stablecoin Launch Request by Swiss SIX Stock Exchange to Central Bank for Easier Fiat Swaps
- The SIX Stock Exchange is hoping to convince the central bank to release a stablecoin.
- No final decision has been made yet, but the central bank confirmed that these talks were already happening.
Stablecoins are one of the most trusted types of crypto assets on the market, primarily because they are pegged directly to a currency in the traditional finance industry. There are a few countries with stablecoin’s based in their national currency. Now, the Swiss stock exchange SIX is requesting that the central bank in the country launch their own stablecoin, according to reports from SwissInfo on June 26th.
In the report, the publication says that this stablecoin would be necessary to settling payments on the new trading platform for digital securities. The exchange announced their SDX platform during the Crypto Valley Association conference, which took place this week, saying that they would make it possible to exchange fiat currency for a new stablecoin.
The exchange explained their plan further, saying that the member banks would be able to use tokenized CHF for the trade settlement and other obligations, after the exchange is active. The firm added that the tokens can be coined whenever it is necessary. Continuing, the firm said,
“SDX would accept CHF payments from member banks in central bank money and issue equivalent tokenized CHF in SDX. The value of tokenized CHF would be pegged 1:1 with CHF at all times. We most definitely favor a central bank issued stablecoin.”
The outlet said that the central bank confirmed that they were discussing this matter with SIX, regarding the different opportunities for consumers “to settle the cash side” involved with trading. However, there has been nothing officially established, and no decision has been made so far.
In February, CoinTelegraph reported that the SIX Swiss Exchange was working to test out the integration of blockchain technology on the SDX platform towards the end of the year. This platform is mean to help investors trade stocks that have been made digital. The users are supposed to be able to purchase tokens or securities, with the option to redeem it for cash.
The JPM Coin by JPMorgan Chase is due to be launched by the end of this year.