The SIX Digital Exchange (SDX) and Banque Pictet et Cie have completed a joint pilot to tokenize corporate bonds. The purpose is to enable fractional quantities of bonds to be allocated to individual portfolios managed by Pictet Asset Management. The key advantages include the ability to better customize and personalize client portfolios and to enable greater diversification through fractionalization.
SDX is well known as a platform for the issuance of native digital bonds. This is different because it involves tokenized existing bonds (both CHF and EUR) held in the main SIX central securities depository (CSD), SIX SIS. Hence, the customization enabled for individual portfolios is now applicable to both native digital bonds as well as tokenized conventional bonds. Additionally, client portfolios can be rebalanced in an automated manner.
Olivier Ginguené, Chief Investment Officer Multi Asset & Quantitative Investment at Pictet Asset Management, described it as “A new and innovative use case for tokenised trading of securities that opens up for customisation at scale.”
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