Swiss Stock Exchange to Tokenize Securities In New DLT Platform

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Switzerland’s principal stock exchange has announced it’s developing a blockchain based platform to tokenize traditional securities with further trading, settlement and custody services for these tokenized assets. In a statement on Friday, SIX Swiss Exchange said it’ll build the brand new initiative – dubbed SIX Digital Exchange – on a distributed book with its specialized experience in operating a large scale financial infrastructure. As regulated stock trading system, Swiss Exchange further stated the SDX may have the exact same standard of supervision and regulation upon completion and will be supervised by Korean financial regulators. In an e-mail response, a representative from SIX, a company that owns Swiss Exchange, told CoinDesk that the development process will be broken up into a number of phases with a preliminary plan for debut next year.

The very initial step is to build up a regulated exchange platform. In a second phase we’ll give the support to tokenize existing bankable assets that will be followed closely by the tokenization of non bankable assets. Following a flexible approach to meet the needs of today’s dynamic environment, the first solutions will be rolled out in mid-2019, the company said. On the other hand, the exchange mentioned that the aim of the platform isn’t for trading cryptocurrencies, but rather a market where traditional investors may digitalize their assets using distributed ledger technology. Jos Dijsselhof, Managing Director of SIX, stated in the statement: This is the onset of a brand new era for capital markets infrastructures.

For us it’s abundantly obvious that a lot of what’s going on in the digital space is here to remain and will specify the future of our business. The financial sector today wants to bridge the gap between traditional financial services and digital communities. The Swiss exchange isn’t the only trading platform that’s exploring how to integrate distributed ledger technology to its existing business operations. As previously reported by CoinDesk, the Australia Securities Exchange has started its own blockchain work since 2015 and eyes a 2020 roll out to replace its CHESS clearing and Settlement System. SIX picture via Shutterstock. The leader in blockchain information, CoinDesk is a media outlet that strives for the greatest journalistic standards and complies with a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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