SIX Stock Exchange to Release a DLT-Based Cryptocurrency Exchange
The leading Swiss stock exchange SIX is developing a trading platform for cryptocurrencies. The service will be available mid-2019, reported the company.
The company is looking to become a pioneer in the crypto trading market as it’s going to be the first regulated financial business to launch such an exchange.
The planned platform is dubbed SIX Digital Exchange and aims to meet market demand in line with current regulations. The cryptocurrency exchange will be based on distributed ledger technology or DLT, allowing it to tokenize securities and “non-bankable assets“.
SIX to become the first regulated company to provide a fully integrated end-to-end trading
According to SIX, the company will be remarked as the first stock exchange on all continents to provide “a fully integrated end-to-end trading, settlement and custody service for digital assets“.
“This is the beginning of a new era for capital markets infrastructures. For us, it is abundantly clear that much of what is going on in the digital space is here to stay and will define the future of our industry,” stated Jos Dijsselhof, CEO of SIX, adding that “The financial industry now needs to bridge the gap between traditional financial services and digital communities. This is the role that we at SIX can play.”
The digital ecosystem for the future is approaching
SIX Stock Exchange manages the whole range of securities and payments-based businesses in Switzerland, the aspect which enables the company to show a major influence on financial regulations and create the so-called “digital ecosystem for the future.”
“These are strengths that we can bring to the digital space and contribute meaningfully to what is one of the most innovative and dynamic environments of our time,” Dijsselhof explained.
Here’s what Thomas Zeeb, the head of securities and exchanges at SIX declared:
“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. Do you adopt a model with many sub-custodians, including inefficient interfaces and with inherent risks, or do you go with a recognized and regulated infrastructure provider who provides all steps of the chain in an integrated and secure model? We believe that the latter has significant value.
“As the stock exchange infrastructure for Switzerland, we know what it takes to build and run mission-critical and scalable, systemically important services.”
This isn’t SIX’s first involvement in crypto-related projects. Earlier this year, the company has teamed up with a group of stock exchanges and financial service Swift to examine the benefits of blockchain technology.
SIX is also involved in a blockchain-based project alongside UBS, Credit Suisse, Barclays, and other partners. The latter collaboration aims to streamline the standards of “counter-party reference data with industry counterparts using Ethereum smart contracts“.