Swiss SIX Receives Regulatory Approval to Launch Digital Token Exchange

SIX Digital Exchange (SDX) – based in Switzerland – has obtained regulatory approval from FINMA, the Swiss Financial Market Supervisory Authority, to operate a marketplace for digital assets.

On Friday, September 10, the SIX Digital Exchange stated that FINMA, the country’s market regulator, awarded it two licenses to operate a stock exchange and a central securities depository for digital assets in Switzerland.

The digital exchange has stated that the new approval from the regulator has enabled the firm to launch a digital bourse, dubbed SDX – a fully regulated trading, settlement, and custody infrastructure for digital securities running on Distributed Ledger Technology (blockchain).

Thomas Zeeb, SIX's global head of exchanges and a member of the firm's executive board, said that:

"This authorisation enables SDX to go live with a fully regulated, integrated trading, settlement, and custody infrastructure based on distributed ledger technology for digital securities. With these licenses, SDX can now offer the highest Swiss standards of oversight and regulation."

The SIX Digital Exchange stated that it plans to offer bonds and stocks in the form of digital tokens once the exchange is live. Mr. Zeeb signalled that the firm could also provide tokenised version exchange-traded funds and also other assets like art and real estate.

Through the approval, the exchange can now provide efficient services in a secure and regulated environment. The firm also outlines plans to invest in the expansion of the global digital financial ecosystem, like offering a regulated alternative to crypto exchanges, many of which operate outside the confines of established regulations.

The launch of SIX’s new platform would see the firm ahead of major exchanges such as the New York Stock exchange in providing securities based on the blockchain, though the firm stated that it does not plan to support Bitcoin and other crypto assets.

Getting Tokenized Stocks

The SIX Digital Exchange is entering the world of traditional finance with the launch of its new digital assets trading platform.

Similar to the likes of Injective Protocol, FUSANG digital security exchange, Global investment fund Franklin Templeton Investments, and others, the SIX Digital Exchange will allow companies to list their tokenised equities, bonds, or funds on its exchange. This product will give traders and investors direct access to listed companies without using an external broker or paying additional fees. Shares can be bought using US dollars or other accepted payment options, twenty-four hours a day, seven days a week.

The tokenised stocks and bonds available through the exchanges mentioned above allow customers to buy a fraction of a stock or bond without the need of purchasing the entire share, where the underlying risk of the token is derived from the tokenised company.