Swiss stock exchange plans its own crypto trading platform
The Swiss Stock Exchange is developing an integrated platform for the trading, settlement and safekeeping of crypto assets . The digital trading platform, based on Blockchain technology, is scheduled to launch in the middle of next year .
Until now, established financial service providers were rather skeptical about blockchain and cryptocurrencies. But now the wind seems to be turning. The SIX Group , the operator of the Swiss Stock Exchange, announced last Friday that it is developing a blockchain-based exchange platform under the name "SIX Digital Exchange" . The platform will cover the trading, settlement and custody of digital assets - the entire value chain that SIX offers in physical securities .
Fast processing, high regulatory standard
The stock market operator intends to track both stocks and bonds as well as assets that are currently not tradable on its blockchain. SIX stock exchange chief Thomas Zeeb mentioned to the Swiss news agency AWP the example of a museum. In the future, the museum could finance its art collection by issuing tokens . In this way, investors are able to participate in an eventual increase in value of the collection. However, the SIX blockchain not only enables new financing models . It also speeds up trading: Today, the settlement of a stock transaction takes around two days. By contrast, SIX Digital Exchange is intended to handle trading transactions almost in real time .
One reason why the established world of finance was so far reserved for Blockchain is the unclear legal situation . Financial market players have to comply with a large number of detailed regulations. In contrast, the crypto trade is still barely regulated . For example, there is no clear definition of the conditions under which a token can be classified as a security . It is also attributable to the lack of regulation that crypto exchanges are frequently noticed by fraud cases and blatant business management shortcomings . However, negative headlines and legal uncertainty are a source of investor confidence . SIX therefore works closely with the Swiss Financial Market Supervisory Authority and the Swiss National Bank to establish a regulatory standard that corresponds to that of traditional stock exchange trading.
Platform for high quality ICOs
The operator of the Swiss stock exchange intends to launch its crypto platform in the middle of next year. To the products, which are to be traded over it, the SIX responsible persons made so far no concrete data . Whether the Swiss will open their platform for the trading of cryptocurrencies such as Bitcoin, Ether or Ripple is therefore unknown. According to stock market chief Zeeb, however, SIX Digital Exchange uses a separate "liquidity coin" for transaction processing. Zeeb further stated that the crypto platform was aimed, among other things, at "high-quality ICOs" . Digital Going Public has become a growth market in recent years. Since the beginning of the year, ICOs, according to the accountant PwC almost 14 billion US dollars together. Of this amount , 456 million went to Switzerland .
The Swiss stock exchange is not alone with its blockchain plans. Deutsche Börse is currently investigating together with the Bundesbank whether Blockchain can be used to settle securities transactions. It also works with several CSDs on a cross-border transfer of collateral project . The Nasdaq and the Australian Stock Exchange are also currently working on blockchain projects.