Today, SIX Digital Exchange (SDX) launched a prototype version of its blockchain digital assets platform and distributed central securities depository (CSD). Swiss Stock Exchange owner SIX launched SDX to provide end-to-end digital asset trading, settlement, and custody service.
The prototype features digital security token issuance, live trading, and instant settlement. This trial run is to demonstrate the integration of a distributed CSD with the conventional model of a stock exchange. New features, like asset servicing and post-trade services, are slated for the second prototype to be released in the coming months.
The main benefit of blockchain is the nearly instant settlement of trades. This eliminates the risk of payment defaults, and there is no need to use the services of a central counterparty (CCP). This provides higher liquidity to digital assets, plus the immutability of blockchain guarantees transactions are credible. Members will also have a private key to hold their assets on the SDX blockchain.
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