Switzerland Stock Exchange’s SIX Digital Exchange (SDX) Intends to Issue Digital Token
In an interview with Fin News, Thomas Zeeb of the Switzerland Stock Exchange(SIX) discussed the exchange’s vision for the future concerning digitalization. Thomas Zeeb, the head of SIX, stated that by early 2021, the exchange’s new token and an initial digital offering will go live. He also indicated that it is possible that the token will replace traditional shares at some point.
“We’re expecting [to launch the token] by 2021. A prerequisite is to have an appropriate regulatory environment in place. Whether we’ll have this by then will be critical. As we test the first phase early next year, along with the regulatory dialogue, we’re building a bridge to the second piece. That’s when the magic really begins to happen.”
Although the exchange is looking to go digital and may do so eventually, it seems to not currently be seeking to trade existing cryptocurrencies because of the coin’s origin. Zeeb continued,
“We have responsibilities in terms of ensuring that appropriate anti-money laundering and transaction monitoring processes, as is the case today in the traditional world, are in place. The way bitcoin is currently set up and traded, it wouldn’t meet the criteria for SDX.”
It seems that the issue is the legitimacy of the current cryptocurrency. There are methods such as know-your-customer and know-your-coin and it is possible that the exchange will collaborate with platforms that offer these services.
The exchange also recently integrated blockchain into its system. According to Jos Dijsslhof, the exchange’s CEO stated, “The fact is, it takes two days for the buyer of a stock to become the owner. The trade itself only takes a fraction of a section, but after that payments have to be settled and titles transferred. If we put it all on our digital exchange, then the whole process takes only a few seconds. This makes the market more efficient, but at the same time, it also takes risks out of the system.