According to SIX, the new SIX Digital Exchange is the “first market infrastructure in the world to offer a fully integrated end to end trading, settlement and custody service for digital assets”. The platform will also enable the tokenisation of existing securities and an integration of non-bankable assets, meaning those that have been untradeable in the financial system until now. The service will be mainly based on Distributed Ledger Technology (DLT). The plan is for the SIX Digital Exchange to be rolled out in mid-2019.
One challenge in the digital world is the absence of regulation that ensures official safety, security, stability, transparency and accountability, explained Thomas Zeeb, Head Securities & Exchanges at SIX. In this respect, SIX now intends to benefit from its experience as “a recognised and regulated infrastructure provider” to create standards that are comparable to regulation today. The stock exchange is already working with financial regulators to ensure the same standard of oversight.
“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,” comments Jos Dijsselhof, CEO of SIX. SIX can help “bridge the gap between traditional financial services and digital communities,” he says.