Today the newly launched SIX Digital Exchange (SDX), the regulated exchange for digital assets, announced it’s partnering with FQX, the Swiss platform for eNotes, blockchain-based promissory notes. These are a type of formalized short term debt or IOU governed by the Geneva Convention. While promissory notes are typically used alongside bills of exchange for trade finance, they have many other applications.
FQX views the standardization that it offers through the eNote as a huge advantage to break down siloed short term financing markets. By providing a marketplace, SDX will help make the instruments more liquid by enabling investors to trade them easily.
SIX Fintech Ventures was one of the investors in FQX’s investors $4.7 million funding round last year. In January, the startup ran an eNote pilot with Credit Suisse and two Swiss manufacturers, SFS and Mikron. Credit Suisse is one of three banks that are currently live on SDX.
eNotes are essentially an NFT stored on a blockchain promising to pay a party a fixed sum of money at a future date. FQX uses the Hyperledger Fabric enterprise blockchain.
“As the world’s first fully regulated and fully integrated securities settlement and custody platform to trade, settle and custodise digital assets we at SDX we have built the strongest and safest foundation upon which to build a global liquidity network for digital assets,” said David Newns, Head of SIX Digital Exchange.
“The network will be built by establishing strategic partnerships with providers such as FQX. SDX’s collaboration with FQX thus represents a key step in the building out of our ecosystem by providing trading, settlement and custody of FXQ eNotes on SDX.”