The Swiss Financial Market Supervisory Authority (FINMA) has granted Börse Stuttgart subsidiary BX Digital the first license for a Distributed Ledger Technology (DLT) trading system since the Swiss DLT Act was passed in 2021.
The DLT Act in Switzerland defines a DLT trading system as a system that enables the trading of digital assets, such as tokens or cryptocurrencies, using Distributed Ledger Technology (DLT). It ensures a transparent, secure, and efficient exchange of these assets while complying with Swiss financial regulations. With the issuance of the first license by FINMA, BX Digital is permitted to offer a DLT trading system for Swiss customers, provided certain conditions are met, according to a press release. In response to an inquiry from CVJ.CH, BX Digital said that they expect the go-live to take place within the next six months.
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Trading with DLT assets
A central element of the new DLT trading system is the direct settlement in Swiss francs and the transfer of assets via a public blockchain—without the need for intermediaries such as central custodians. This not only saves time and costs but also enables the trading of tokenized assets such as stocks, bonds, and funds between market participants like banks and securities firms. This significantly simplifies processes while ensuring the highest level of security and control over assets.
Payments and asset transfers at BX Digital are based on verified Delivery versus Payment (DvP) agreements. The direct connection to the Swiss National Bank’s payment system allows seamless integration into existing banking systems, according to the announcement.
A first for Switzerland
With the first approval of a DLT trading system, Switzerland once again ranks among the most advanced jurisdictions in integrating blockchain into financial infrastructure. To ensure the necessary liquidity, BX Digital offers market participants regulatory certainty, sets clear quality standards for trading, and ensures the presence of market makers. In close collaboration with its sister company, BX Swiss, a pioneering and highly reliable platform has been developed in a short period.
"We are convinced of the advantages of blockchain technology for the European capital market. As pioneers, we aim to shape the digital European market infrastructure for tokenized assets and thus lay the foundation for the completion of the Capital Markets Union. BX Digital is the beginning, and our digital European issuance and settlement platform will follow soon." - Dr. Matthias Voelkel, CEO of the Börse Stuttgart Group, parent company of BX Digital
