Swiss Stock Exchange Ready to Launch its Blockchain-Based Trading Platform
In order to attract more investors and be part of the crypto and blockchain market, the Swiss Stock Exchange – also known as SIX – is planning to introduce a blockchain based trading platform. With this new implementation, it will be possible to tokenize traditional financial instruments, including securities.
According to SIX, the digital service will start in the middle of 2019 and there are no plans for trading virtual currencies. The company will only use the technology behind virtual currencies to introduce a blockchain based trading platform.
At the same time, the project presented by SIX will allow participants to create their own business models in the platform such as Initial Coin Offerings (ICOs).
It is important to mention that the planned tokenization project will have the same regulations as the SIX by the Swiss Financial Market Supervisory Authority (FINMA). The Central Bank will also be regulating the exchange due to the fact that the owner is a registered financial market infrastructure provider.
Thomas Zeeb, head of securities and exchanges at SIX, explained in a statement:
“The digital space currently faces a number of key challenges. These include the absence of regulation that ensures official safety, security, stability, transparency and accountability – all of which contribute to a lack of trust. The challenge is less in the trading of assets but rather in the custody and asset servicing, including asset safety.”
Other companies in the industry, such as the Australian Securities Exchange (ASX), announced their own plans to work with distributed ledger technology and offer better platforms than those used in the past. IT will reduce the costs of transactions, and track and record all changes, something that will increase transparency and ensure security.