SIX, the group that manages Switzerland’s stock exchange, has announced they will be building a fully integrated trading, settlement, and custody infrastructure for cryptocurrencies. SIX is regulated as an operator of Financial Market Infrastructure by Swiss Authorities, FINMA, and the Swiss National Bank. The new crypto exchange is to be called, SIX Digital Exchange (“SDX”) and is inteded to enjoy the same oversight and regulation as Switzerland’s mainstream stock exchange.
SDX 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. The exchange will allow issuing and trading cryptocurrencies and enable the tokenization of existing securities as well.
“The digital space currently faces a number of key challenges. These include the absence of regulation that ensures official safety, security, stability, transparency and accountability – all of which contribute to a lack of trust – As the stock exchange infrastructure for Switzerland, we know what it takes to build and run mission-critical and scalable, systemically important services.”
-Thomas Zeeb, Head Securities & Exchanges at SIX
“This is the beginning of a new era for capital markets infrastructures. For us it is abundantly clear that much of what is going on in the digital space is here to stay and will define the future of our industry. The financial industry now needs to bridge the gap between traditional financial services and digital communities. This is the role that we at SIX can play.”
-Jos Dijsselhof, CEO of SIX
Its apparent that the SIX group feel confident in tackling the task of bridging the gap between traditional markets and digital ones due to their knowledge and experience from running the Swiss Stock Exchange. They also are pretty adamant on the fact that digital assets like cryptocurrencies are a budding industry that is not going anywhere anytime soon. The expected launch date is said to be in mid 2019.
SIX operates and develops infrastructure services in the areas of securities, payment transactions and financial information with the aim of raising efficiency, quality and innovative capacity across the entire value chain of the Swiss financial center. The company is owned by its users (127 banks). With a workforce of some 4,000 employees and a presence in 23 countries, it generated operating income in excess of CHF 1.9 billion and group net profit of CHF 207.2 million in 2017.