Capital markets News

SIX Digital Exchange goes live with digital asset custody

digital asset custody

Three months ago, the SIX Digital Exchange (SDX) said it was planning an institutional digital asset custody offering and signed a deal with technology provider Fireblocks. Today the SDX Web3 division announced that the custody solution is live, enabling institutions to delegate the operational and technical complexities of cryptocurrency custody to SDX.

The initial target clients are regulated, such as banks, product providers and investment managers, and at first it is focused on Switzerland, with an eye on Europe.

SDX Web3 believes the security standards associated with a major stock exchange group like SIX separates the SDX offering from most others in the marketplace.

SDX’s Stephan Kunz previously spoke about the new crypto custody service, saying, “the advantage of SDX is that it is a riskless counterparty – we are not a financially exposed counterparty.”

Initially, the custody solution supports Bitcoin and Ether, with other tokens such as stablecoins and DeFi-related digital assets to be added in the future based on client demand. In August, SDX announced the launch of non-custodial Ethereum staking services.

SDX spans both cryptocurrencies and the tokenization of real world assets. When it launched last year, SIX issued a tokenized bond using the platform.

SIX isn’t the only big name stock exchange to be associated with crypto custody. Last month Nasdaq announced plans to get into the digital asset custody business, but we believe it’s still early in the journey. Other incumbents associated with custody offerings include Standard Chartered’s Zodia Custody and Nomura’s joint venture Komainu.

The top conventional custodians are all getting in on the act, with BNY Mellon partnering with Fireblocks, State Street Digital with Copper, and BNP Paribas Securities Services with Fireblocks and Metaco.