BX Digital, which received the first FINMA license for a Distributed Ledger Technology (DLT) trading system in mid-March, has announced its first five trading participants. The launch is expected to take place in the coming months.
The Swiss banks Sygnum Bank, Incore Bank, and Hypothekarbank Lenzburg, along with securities firm ISP Group and EUWAX AG - a broker of the Börse Stuttgart Group - are currently undergoing the onboarding process for admission as trading participants on BX Digital. According to a press release, these participants intend to actively engage in regulated digital asset trading via this new market infrastructure once the system goes live. This marks a significant milestone on the path toward a broadly supported institutional ecosystem for digital assets in Switzerland.
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First DLT trading system in Switzerland
A DLT trading system is a platform that uses distributed ledger technology (DLT) to trade financial assets such as securities on a blockchain. It ensures a transparent, secure, and efficient exchange of these assets while complying with Swiss financial regulations. In Switzerland, the approval of such platforms was established under the DLT Act in 2021. FINMA waited until March of this year before granting the first license to BX Swiss.
A central feature of the new DLT trading system is direct settlement in Swiss francs and the transfer of assets over a public blockchain - without the need for intermediaries such as central securities depositories. This saves time and costs, and enables the trading of tokenized assets such as shares, bonds, and funds between market participants like banks and securities firms. It significantly simplifies processes while ensuring maximum security and control over the assets. Payment and asset transfer are carried out based on verified delivery versus payment (DvP) agreements. Direct integration with the Swiss National Bank’s payment system allows for seamless incorporation into existing banking systems.
Launch in the coming months
All partners bring extensive experience in the digital asset business and aim to demonstrate their commitment to the advancement of the digital financial center by joining early, the press release continues. Their participation underscores confidence in the system’s technological capabilities and regulatory compliance. The onboarding launch marks a pivotal step. BX Swiss expects the trading system to go live within the next few months, signifying the transition from the development phase to active market operations.
"We are very pleased with the trust placed in us by our partners. Together, we are opening a new chapter in the digital capital market. This is the foundation for the imminent launch of our trading system. With these first participants, we are establishing the basis for a liquid and trustworthy ecosystem that will shape the digital financial center in the long term." – Lidia Kurt, Chief Executive Officer of BX Digital
