- SDX has secured two licences from the Swiss Financial Market Supervisory Authority (FINMA) to act as an exchange and central securities depository.
- It is planning to establish a global network for digital assets to include major players such as banks, insurance firms, etc.
- Alternative assets such as paintings, or even vintage cars could also be there on the SDX (but not soon), hinted SIX officials.
Switzerland is getting closer to join the bandwagon of the countries clearing the way for trading in cryptocurrencies. On Friday, Swiss Exchange SIX announced that it has received the regulatory approval to launch a digital stock exchange called SIX Digital Exchange or SDX.
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SDX was granted two licences from the Swiss Financial Market Supervisory Authority (FINMA) – one licence allows it to operate as a stock exchange, while another for a central securities depository for digital assets in Switzerland.
Here is a list of 10 important developments surrounding SDX.
- SDX’s approval to commence operations in digital assets could now pave the way for trading in cryptocurrencies as well in the future.
- The exchange will be going live with its fully regulated trading and investment in digital assets.
- SDX’s settlement and custody infrastructure will be based upon distributed ledger technology for digital securities, meaning all transactions will be recorded digitally.
- With the licences from FINMA, SDX will now be able to offer highest Swiss standards of oversight and regulation for these digital assets.
- Switzerland is now expected to see a significant growth in digital asset related transactions with the new institutional grade infrastructure for transacting and holding these securities.
- Some analysts are also expecting this to be a gateway for NFTs (Non-fungible token), which are units of data stored on a blockchain network, certifying a digital asset to be unique.
- SDX does not want to restrict its operations to Switzerland, but has a vision to create a global network for these digital assets to include banks, insurance firms, institutional investors etc.
- According to Reuters, SDX will initially begin with trading in bonds, while publicly listed shares are unlikely to hit the bourse in the immediate future.
- SIX officials had previously said that SDX could also offer trading in exchange-traded funds (ETFs).
- Surprisingly, alternative assets such as paintings, or even vintage cars could also be there on the SDX (but not soon), hinted SIX officials.
The plan to launch a digital exchange had been long pending since 2018, during the early boom of Bitcoin. The launch plans got delayed to the second half of 2019 and finally approvals were secured in September 2021.
SDX is planning to go all guns blazing and has recently appointed a new CEO, David Newns, who is an international capital markets expert with a sharp acumen in the regulated financial services industry. Switzerland’s new digital stock exchange also marks another step towards wider acceptance of digital assets.