The Swiss stock exchange, SIX Group, says it will create an exchange to trade tokenised digital assets next year. The new service, using distributed ledger technology similar to blockchain, aims to provide a bridge between traditional finance and the growing world of cryptoassets.
The SIX Digital Exchange will be subject to the same regulatory oversight as existing exchange services. The platform will allow trading of securities and other financial products that can be digitally tokenised. The platform does not intend allowing the direct trade of cryptocurrencies such as bitcoin and ethereum.
“The service will provide a safe environment for issuing and trading digital assets and will enable the tokenisation of existing securities and non-bankable assets to make previously untradeable assets tradeable,” SIX said in a statementexternal link.
At present, crypto exchanges have to use a variety of third-party partners to conduct various elements of the trading process. SIX says all elements of the chain will be housed under its new exchange.
“It will be the first market infrastructure in the world to offer a fully integrated end-to-end trading, settlement and custody service for digital assets,” it said.
Thomas Zeeb, SIX head of securities and exchange, added: “Do you adopt a model with many sub-custodians, including inefficient interfaces and with inherent risks, or do you go with a recognised and regulated infrastructure provider who provides all steps of the chain in an integrated and secure model? We believe that the latter has significant value.”
In a YouTube interviewexternal link, Zeeb says the new platform would allow “all market participants to develop their own business models within that ecosystem. We’re putting together a team of developers and advisors that will help clients create ICOs [initial coin offerings] and new products around that”.
SIX Group is owned by the 130 banks that use its trading services.