- The Swiss stock exchange, SIX, has received regulatory clearance to begin its long-awaited digital exchange.
- In a 2019 interview with CNBC, he said, that may take a bit longer depending on where the banks are
- Nonetheless, the approval is a watershed moment in the world of cryptocurrencies, which have been gaining recognition from a slew of major corporations and even an entire country as their values have risen
The Swiss stock exchange, SIX, has received regulatory clearance to begin its long-awaited digital exchange. The SIX Digital Exchange said on Friday that it has received two licenses from FINMA, Switzerland’s market regulator, to operate a stock exchange and repository for blockchain-based assets. SIX said it can now establish regulated trading, settlement, and custody infrastructure based on distributed ledger technology, often known as the blockchain, which is best recognized for keeping an immutable record of all bitcoin transactions. Once the new exchange is operational, the company aims to sell stocks and bonds in the form of digital tokens. SIX’s worldwide head of exchanges, Thomas Zeeb, has suggested that the business may provide tokenized exchange-traded funds as well as other assets like art and real estate.
In a 2019 interview with CNBC, he said, that may take a bit longer depending on where the banks are. SIX has not stated when the new product would be available. The digital exchange may serve as a controlled alternative to cryptocurrency exchanges, many of which operate outside of established regulations. Binance, the world’s largest cryptocurrency exchange, has received several warnings and threats from governments all around the world. Coinbase, a regulated company, recently drew the ire of the US Securities and Exchange Commission. SIX’s new platform would put it ahead of major exchanges like the New York Stock Exchange in terms of selling blockchain-based securities, however, the business has stated that it would not support bitcoin or other cryptocurrencies.
Nonetheless, the approval is a watershed moment in the world of cryptocurrencies, which have been gaining recognition from a slew of major corporations and even an entire country as their values have risen. PayPal, Square, and Mastercard are just a few of the big financial institutions that have endorsed digital currencies. El Salvador became the first country to recognize bitcoin as legal cash this week, while the Ukrainian Parliament passed legislation legalizing and regulating cryptocurrencies on Thursday. SIX’s proposal would make it one of the first major stock exchanges to create a digital asset exchange. In 2018, the company announced its ambitions to launch a digital exchange.
In 2019, Zeeb stated, he can’t afford to do an Uber, it doesn’t work. He was alluding to the ride-hailing company’s reputation for entering new markets without first seeking approval from regulators. SIX Digital Exchange stated that it will continue to invest in technological development in the coming months. The company also stated that it expects to attract clients such as banks, insurance companies, and institutional investors and that its exchange network would be launched internationally. This is a major milestone in pushing the digitization of financial markets into the mainstream, but it is only the beginning, Zeeb said in a statement on Friday. To design the markets of the future, they will continue to collaborate with their clients, regulators, and other stakeholders.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.