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Swiss BORSE Plans to Use Blockchain Tech to Increase Tradability of Non-bankable Assets
Editorial Team

The Swiss Stock Exchange (SIX) is planning to introduce a Blockchain –based trading platform that will tokenize traditional financial instruments like securities. According to cryptovest.com, the new digital service will begin in the middle of 2019 with no plans of trading cryptocurrencies but only using Blockchain tech.

The aim of the SIX cryptoassset project is to let market participants create their own business models within the platform, including the launching of Initial Coin Offerings (ICOs).

Six said:

“The service will enable the tokenization of existing securities and non-bankable assets to make previously untradeable assets tradeable.” Trading, settlement, and custody infrastructure will be integrated into the platform.

The planned tokenization project will be subject to the same regulations as SIX by the Swiss Financial Market Supervisory Authority (FINMA) and the central bank because the exchange’s owner is a registered financial market infrastructure (FMI), provider.

“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. The challenge is less in the trading of assets but rather in the custody and asset servicing, including asset safety,” Thomas Zeeb, head of securities and exchanges at SIX, said in a statement.

SIX plans first to enable the trading of existing bankable assets and at a later stage – of the non-bankable ones, according to cryptovest.com.

Last year, the Australian Securities Exchange (ASX) announced its plan to use Blockchain to clear and settle trades in a bid to save money. Blockchain’s distributed ledger technology enables the reduction of cost, the speed up of the transactions, and the more security and transparency tracking and recording all changes.

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