SIX Digital Exchange (SDX), a Swiss company, has received regulatory clearance from FINMA, the Swiss Financial Market Supervisory Authority, to run a digital asset exchange.
On Friday, September 10, the SIX Digital Exchange said that the country’s market regulator, FINMA, has granted it two licenses to operate a stock exchange and a central securities depository for digital assets in Switzerland.
According to the digital exchange, the new regulatory clearance has enabled the company to establish SDX, a fully regulated trading, settlement, and custody infrastructure for digital assets based on Distributed Ledger Technology (blockchain).
SIX’s worldwide head of exchanges and a member of the company’s executive board, Thomas Zeeb, stated:
“This authorisation enables SDX to go live with a fully regulated, integrated trading, settlement, and custody infrastructure based on distributed ledger technology for digital securities. With these licenses, SDX can now offer the highest Swiss standards of oversight and regulation.”
Once the exchange is operational, the SIX Digital Exchange aims to provide bonds and equities in the form of digital tokens. In addition, Mr. Zeeb hinted that the company might potentially provide tokenized exchange-traded funds and other assets such as art and real estate.
The exchange may now deliver effective services in a safe and regulated environment due to the approval. The company also details ambitions to invest in the global digital financial ecosystem, providing a regulated alternative to cryptocurrency exchanges, many of which operate outside of existing rules.
SIX’s new platform will put the company ahead of major exchanges like the New York Stock Exchange to deliver blockchain-based securities. However, the company has said that it would not support Bitcoin or other crypto assets.
Getting Stocks That Have Been Tokenized
With the introduction of its new digital asset trading platform, the SIX Digital Exchange is breaking into the realm of traditional finance.
The SIX Digital Exchange will let firms list their tokenized equities, bonds, or funds on its exchange, similar to Injective Protocol, FUSANG digital securities exchange, global investment fund Franklin Templeton Investments, and others. This solution will provide traders and investors with direct access to publicly traded firms without the need for an intermediary or additional fees. Shares can be purchased 24 hours a day, seven days a week, using US dollars or other recognized payment methods.
The exchanges mentioned above provide tokenized stocks and bonds, which allow consumers to acquire a fraction of a stock or bond without buying the full share, with the underlying risk of the token originating from the tokenized firm.