The Swiss arm of the Raiffeisen banking group is the next member to join the trading platform and central securities depository (CSD) of the SIX Digital Exchange (SDX). With this cooperation, Raiffeisen aims to further establish its presence in the blockchain sector.
SDX is the digital exchange of the Swiss stock exchange SIX. The subsidiary, licensed by the Swiss Financial Market Supervisory Authority (FINMA), operates a trading platform and a central securities depository using distributed ledger technology (DLT). With this move, Raiffeisen Switzerland becomes part of a comprehensive ecosystem for the issuance, trading, settlement and custody of digital assets via SDX.
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Raiffeisen Switzerland deepens commitment to blockchain
Until now, Raiffeisen's digital asset offerings have been limited. However, by connecting to the SIX Digital Exchange, the Swiss bank gains access to a complete platform. SDX's "Atomic Settlement" feature synchronises trade execution, securities transfer and payment, eliminating counterparty risk.
"By joining the SDX ecosystem, Raiffeisen Switzerland is expanding its presence and experience in the digital asset space with the aim of actively contributing to the development of the industry and product landscape for digital assets." - Werner Leuthard, Head of Trading, Raiffeisen Switzerland
In addition, the integration of SDX into the Swiss Exchange's central securities depository (SIS) is expected to facilitate seamless access for institutional clients and bridge the gap between digital and traditional infrastructures. According to David Newns, Head of SDX, Raiffeisen Switzerland's membership reflects a shared commitment to the blockchain sector.
Swiss banks increasingly offering crypto services
For about a year, various Swiss banking groups have been preparing to offer their own crypto services. The initiative began with PostFinance in April, when Switzerland's largest retail bank unveiled its trading and custody offering for early 2024. A few months later, Luzerner Kantonalbank promised similar services for the first quarter of next year, becoming the first state-owned bank to do so. This has started a trend of offering investment options for digital assets by Swiss banks.
Shortly after, Zuger Kantonalbank surpassed its Lucerne counterpart by promptly launching trading and custody services for selected cryptocurrencies. In an interview with CVJ.CH, Jan Damrau of ZugerKB mentioned that the offering had been in the works for some time. A few weeks later, St. Galler Kantonalbank also entered the market. Damrau expects more cantonal banks joining in the future.
"The cantonal banks are in loose communication with each other, as with other topics. I am convinced that other institutions will join in. I don't want to speculate on when and in what form these products will be launched. In five years time, probably not all cantonal banks will be offering crypto assets. However, next to LUKB and SGKB, we will certainly not be the only ones who have grown their product offering." - Extract from the CVJ.CH interview with Jan Damrau, Head of Corporate Governance at Zuger Kantonalbank.
