The SIX Swiss Exchange in Zurich, Switzerland.
Stefan Wermuth | Bloomberg via Getty Images
SIX, the Swiss stock exchange, has received regulatory approval to launch its long-awaited digital stock exchange.
The SIX Digital Exchange announced on Friday that it has obtained two licenses from FINMA, the watchdog of the country’s markets, to operate a stock exchange and a blockchain-based securities depository.
SIX said it was now able to launch a regulated trading, settlement and custody infrastructure based on distributed book technology, also known as blockchain. It is the system best known for its use in maintaining an immutable list of all cryptocurrency transactions.
The firm did not say when it expects the new product to be launched or what assets it would allow to operate with investors. However, the digital exchange could provide a regulated alternative to cryptocurrency exchanges, many of which operate outside the limits of established rules.
Binance, the world’s largest cryptocurrency exchange, has faced various warnings and threats from authorities around the world. Meanwhile, Coinbase, which is a regulated business, has recently angered the U.S. Securities and Exchange Commission.
The SIX platform would also see how the Swiss stock market outperformed major stock exchanges, such as the New York Stock Exchange, by offering stocks based on the blockchain.
Thomas Zeeb, global head of exchanges at SIX, said earlier that the company plans to offer shares in the form of digital tokens.
“Part of the core MVP (minimum viable product) would be listing, trading and equity settlement,” Zeeb told CNBC in a 2019 interview.
“The rest of the products depend in some way on the ongoing dialogue we maintain with our customers on cases of use of bonds, ETFs (exchange traded funds), for non-custodial assets, such as works of ‘art or real estate,’ he added. “This may take a little longer depending on where the banks are.”
Reference movement
Approval marks a significant milestone in the world of cryptocurrencies, which have seen a growing acceptance of several large companies and even an entire nation as their prices have risen.
PayPal, Square and Mastercard are among the big financial companies that have offered support for digital currencies, while El Salvador this week has become the first country to adopt bitcoin as a legal tender.
The passage of GIS would make it one of the first major courses in launching an exchange dedicated to digital assets. The group unveiled for the first time its plans to launch a digital stock exchange in 2018.
“I can’t afford to make an Uber, it doesn’t work,” Zeeb said in 2019, referring to the travel company’s notoriety for launching itself into territories without first asking permission from regulators.
SIX Digital Exchange said it would continue to invest in the development of its technology over the coming months. The company added that it hopes to attract customers, including banks, insurance companies and institutional investors, and aims to launch its global exchange network.
In a statement Friday, Zeeb said: “This is an important milestone in bringing the digitization of capital markets to the mainstream, but it is only the beginning. We will continue to work with our clients, regulators and other stakeholders to shape markets. of the future “.