SIX Stock Exchange May Issue Its Own Token to Digitize Traditional Assets

www.swissinfo.ch

The head of securities and exchanges of Switzerland’s top stock exchange SIX said that the company may issue a token in order to attain its goal of digitizing traditional assets.

Thomas Zeeb, in an interview published by Finews on May 6, said that the SIX’s planned digital exchange will launch with a native token, as well as an “initial digital offering” (IDO) service in 2020. A trial is anticipated to be finished late this summer.

Zeeb said, “We’ve got a number of organizations which want to launch tokenized structured products, real estate funds, and so on. But it could also be our own IDO,” adding that:

“Whether we begin with warrants, structured products, funds is up to our clients to decide. That is currently being finalized with our user-owners.” 

Furthermore, Zeeb said that an IDO must comply with similar regulatory standards that an initial public offering or IPO is subject to.

The executive anticipates that by 2021, the in-development SIX Digital Exchange (SDX) to be tokenizing conventional securities like fixed income, funds, and equities, given that the regulatory compliance is in place.

“Maybe the token will eventually replace the share one day,” he stated.

Zeeb, however, said that the exchange is at present not comfortable in providing trading service in digital currencies because of their compliance risks and anonymous nature. “The way bitcoin is currently set up and traded, it wouldn’t meet the criteria for SDX,” he said.

According to Zeeb, the exchange is putting a “double-digit million amount” on developing the SDX over two years. SIX also wants to hire 30 additional people by the end of this year, bringing SDX’s total staff to 100. The exchange is collaborating with R3’s Corda Enterprise blockchain to create the platform.

SIX announced in June last year its plan to establish a regulated exchange platform for digital assets, initially with stocks and then delving into other tradeable instruments like fine art.