The SIX Digital Exchange (SDX) announced that the issuance of digital assets on its platform surpassed the CHF 1 billion mark. This primarily involves the tokenization of traditional bonds on the blockchain.
Since September 2021, the Swiss stock exchange SIX is operating a fully regulated platform for the issuance and trading of digital assets. SDX members include leading Swiss banking institutions such as UBS, ZKB, Raiffeisen Switzerland, several cantonal banks and others. In addition, international institutions are running their digital asset trials on the platform.
One Billion CHF thanks to World Bank bond
The participation of key issuers such as the World Bank, UBS AG, the City of Lugano, the Cantons of Zurich and Basel-Stadt, the City of St. Gallen and SIX Group AG has significantly advanced the digital transformation of the Swiss financial market, according to a press release. In particular, several issues were part of the SNB's Helvetia Phase III project, which enables settlement in Swiss francs (CHF) as a digital central bank currency (wCBDC). Switzerland is the only major financial center in the world to have enabled settlement of securities transactions in wCBDC. Interested readers can learn more about this topic in an interview with Thomas Moser, an alternate member of the SNB Board.
SDX achieved this milestone in collaboration with the World Bank. The World Bank priced the first digital CHF bond from an international issuer to be settled in Swiss francs using the digital central bank currency (wCBDC) provided by the Swiss National Bank (SNB). With a maturity of seven years and a volume of CHF 200 million, this was the largest Swiss franc bond issued by the World Bank since 2009. SDX processes the coupon and redemption payments in tokenized CHF.
Further expansion
The success of the digital bond issuance strengthens SIX's position as a pioneer in digital assets. With a focus on regulatory compliance, security and efficiency, SDX continues to set new standards in digital finance, revolutionizing the way investors access and interact with financial markets.
"Surpassing the one billion mark underscores the growing acceptance and proliferation of digital assets in the global financial landscape and the leading position of the Swiss financial center in this critical area of capital market innovation. [...] The digital bonds issued to date remain accessible to the entire investor community as they are listed, traded and settled on both a regulated digital exchange and traditional market infrastructures." - David Newns, Head of SIX Digital Exchange