The owner and operator of the stock exchange in Switzerland, SIX Group, has recently announced its plans to launch a fully-integrated platform for trading digital assets using distributed ledger technology.
According to the official announcement that the company has made today, the new platform will be the SIX Digital Exchange (SDX) and it will be used to enable the tokenization of existing securities and non-bankable assets, which could be used to turn them into tradable assets.
The Chief Executive Officer of the company, Jos Dijsselhof, claims that this is the beginning of a new era for capital market infrastructures with the help of the blockchain technology because the digital space “is here to stay” and this will define the future of the financial industry as a whole.
Dijsselhof believes that the financial industry now needs to bridge the gap between the services that are traditionally offered by the financial industry and the digital communities and technologies.
SIX Will Implement Transparency
SIX Digital Exchange has a challenge in the implementation of both transparency and accountability. The company’s Head of Securities and Exchanges, Thomas Zeeb, has spoken about the challenges of the digital space. According to him, the absence of regulation to ensure safety and transparency is the main challenge.
This contributes to a lack of trust in this industry and creates a challenge that is less about trading the actual assets and more or custody and asset servicing.
The company will work under the supervision of the Swiss National Bank and the Swiss Financial Market Supervisory Authority, so the security and regulation standards will be the same as the other traditional products of the company. The first services of the company will start to be available mid-2019 according to the company’s staff.
SIX Is Already Familiar With Similar Products
It is important to notice that SIX is already familiar with digital trading, as in 2016 it admitted the Vontobel Tracker Certificate on Bitcoin, which worked like an ETF product for Bitcoin in the Swiss Stock Exchange. This project had a term of only two years, though, and, as the trading started on July 15, 2016, it will end soon, on July 16, 2018.