BX Digital, the Swiss subsidiary of the Boerse Stuttgart, has received authorization from Swiss regulator FINMA to launch a DLT trading venue for digital and tokenized securities, subject to the completion of certain conditions. It is also sister to the conventional exchange, BX Swiss.
Key features of the exchange include the trading of digital assets such as stocks, bonds and funds on a permissionless blockchain, initially Ethereum, and a link to the central bank for settlement purposes, enabling delivery versus payment (DvP). It sidesteps the need for a central securities depository (CSD).
Switzerland introduced novel laws supporting DLT trading venues back in 2021, but BX Digital will be the first to take full advantage. Of course there’s the SIX Digital Exchange, which has issued CHF 1.5 billion in securities which are traded on its platform. However, SDX has conventional licenses for a CSD and securities exchange. It’s securities are also hosted on a permissioned blockchain.
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