The SIX Digital Exchange (SDX) was the first stock exchange to launch a blockchain-based secondary market for digital securities. Equally groundbreaking is its work with the Swiss National Bank (SNB) as part of Project Helvetia III, allowing a real wholesale central bank digital currency (CBDC) to be used for the settlement of digital security transactions on SDX for a limited time. SDX Head David Newns shared some of the details with Ledger Insights.
There are several reasons why this wholesale Swiss franc pilot is different from other interbank CBDC experiments, but two stand out. Most other pilots are one off trials, whereas this is for regular SDX transactions. Secondly, the blockchain infrastructure that powers the payments isn’t a test platform that needs to be further developed to reach production grade. It is currently live.
SDX had already solved cash on ledger. However, its current iteration involves SDX tokenizing cash, which means there is still counterparty risk because it’s not bankruptcy remote.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
