Capital markets News

Swiss Stock Exchange SIX invests in Custodigit for digital asset custody

SIX swiss stock exchange

The Swiss Stock Exchange SIX announced it’s investing in Custodigit. The digital asset custody firm is a joint venture between telecoms firm Swisscom and Swiss digital bank Sygnum that provides a solution to enable Swiss banks to offer digital assets to their customers.

Similarly, together SIX Digital Exchange (SDX) and Custodigit will provide an ‘Institutional Digital Asset Gateway’ to enable banks and their customers to access cryptocurrencies and other digital assets. The solution will support trading, smart order routing, settlement, custody, and secondary market access. 

SIX also recently invested in Omniex, which provides a gateway to various digital exchanges and over the counter markets. At the time, SDX Chairman Thomas Zeeb said, “the collaboration with Omniex to deliver the front end for clients, both for existing cryptocurrencies, as well as in future for SDX-listed assets, is an important addition to the digital ecosystem.”

The Gateway still requires regulatory approval, but an initial joint service uses Custodigit’s existing platform and is expected to be released in the first quarter of 2021. SIX has big expectations of the partnership and envisions the development of new financial services and cryptocurrency-related products. 

“Coupled with our recent CBDC announcement with the SNB and BIS, this is potentially one of the most significant shifts in the digital finance space right now. Custodigit is a functioning operator for digital asset servicing – not just an idea to be realised. Coupled with our very productive relationship with Swisscom and Sygnum Bank – it is clear that we have the perfect balance of elements to allow clients to access the digital markets to meet their needs. Today, and for the future,” said Zeeb (SDX). 

Zeeb is referring to the Swiss National Bank’s recent announcement regarding central bank digital currency trials. The bank carried out tests to explore the potential for a wholesale CBDC so that payments for digital assets could be settled instantly. However, while the tests were successful, the results concluded that further work is needed.

Today’s partnership is between Custodigit and SIX Digital Exchange (SDX). SDX is an initiative created by SIX to provide end-to-end digital asset trading and settlement, expected to launch next year. SIX launched a prototype of SDX over a year ago featuring digital security token issuance, live trading and instant settlement.

Meanwhile, the investors in Custodigit, SIX, Sygnum, and Swisscom have an existing relationship. Last year, SIX and Sygnum invested in SME share registry and tokenization firm daura, in which Swisscom was a founding investor. The investment brought together two separate efforts for expanding the integration of digital assets in the Swiss economy. Until then, Swisscom and Sygnum had collaborated with the Deutsche Börse for digital assets while SIX focused on SDX. 

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