SIX Digital Exchange launches in Switzerland with full regulatory approval

Karthik Subramanian

SIX Digital Exchange (SDX), the first fully approved digital asset exchange in Switzerland, has finally thrown open its doors with its first transaction which was the issuance of a blockchain bond worth $150 million.

Regulation has been a keyword in the crypto industry in recent times. Till a year or so back, none of the regulators took the crypto industry very seriously as they felt that it was a trading fad that would gradually lose steam and people would then forget about it and would be long gone. But the industry has managed to survive the various periods of a trough and has gone from strength to strength in recent times so much that it now threatens to overwhelm the existing financial ecosystem. This has been a wake-up call for the regulators around the world who are now scrambling to catch up. Switzerland has been one of the countries that have been at the forefront of embracing crypto and rather than trying to shut it down, it has been trying to regulate the industry and it has also been trying to persuade and encourage the players in the industry to get regulated so that they can all grow and flourish.

The SDX was one of the first to apply for the same and it managed to receive 2 licenses from the regulator FINMA last year and it says that this was the first transaction that was performed with full regulated market infrastructure. Credit Suisse, UBS Investment Bank, and Zürcher Kantonalbank acted as the joint lead managers on the bond issuance.

“The first issue of a tokenized bond on the SIX Digital Exchange as well as its listing and placement in the market proves that the forward-looking distributed ledger technology (DLT) also works very well in the highly regulated capital market,” said Thomas Zeeb, global head of markets at SIX.

The blockchain architecture used by SDX is based on permissioned Corda architecture supplied by R3 and an important point to note here is that it doesn’t use any of the other privately owned blockchains like Ethereum, Polygon, Solana, and others. This is likely to be the way ahead chosen by most of the large production companies and regulated entities as they would like to build their infrastructure to ensure the security and reliability of the data.

Read this next

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

Industry News

SEC charges $410+ million Ponzi scheme with pre-IPO shares

We allege that the defendants deceived investors about the pre-IPO shares they held, how much they were charging in fees, and who was controlling the business—all while paying themselves more than $75 million.

Industry News

FNZ taps data analytics GIST to address ESG ratings bias

The allocation of capital is critical to driving the change required to transition to net-zero and building a more sustainable economy and society.

<