BX Digital has become the first Swiss financial market infrastructure to receive approval from the Swiss Financial Market Supervisory Authority (FINMA) for a Distributed Ledger Technology (DLT) trading facility.
This marks a significant development in Switzerland’s financial sector, establishing a regulated platform for digital assets.
The new trading facility aims to enhance innovation in Switzerland’s financial centre and establish a model for Europe.
It provides access to trading various digital assets and facilitates fast, cost-effective, and secure transactions through a public blockchain (Ethereum).
The platform also integrates with the Swiss National Bank’s payment system to settle cash transactions.
Dr Lidia Kurt, Chief Executive Officer of BX Digital, stated:
“The granting of the licence by FINMA to operate a DLT trading facility is an important step in setting new standards for capital market efficiency and customer access in the digital asset space. Regulated secondary markets have been lacking so far. BX Digital aims to become the leading Swiss financial market infrastructure for trading and decentralised settlement of digital assets.”
A core feature of the platform is the settlement of transactions in Swiss francs and the transfer of assets on a public blockchain without intermediaries such as central securities depositories (CSDs).
This reduces costs and streamlines processes while maintaining security and control over assets.
The platform supports the trading of tokenised assets, including shares, bonds, and funds, between financial institutions.
Transactions are conducted based on verified delivery versus payment (DvP) agreements, ensuring direct integration with existing banking systems.
BX Digital is part of the Boerse Stuttgart Group, the sixth-largest exchange group in Europe.
Dr Matthias Voelkel, Chief Executive Officer of Boerse Stuttgart Group, stated:
“We are convinced of the benefits of blockchain technology for the European capital market. As pioneers, we want to shape the digital European market infrastructure for tokenised assets and thus lay the foundation for the completion of the capital market union. BX Digital is the first step, and our digital European issuance and settlement platform will follow soon.”
FINMA’s authorisation for BX Digital to operate a DLT trading facility remains subject to certain conditions.
The licence will become legally effective once these conditions are met, after which BX Digital will commence operations and accept clients.
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Featured image credit: edited from freepik
