Together with the major Swiss banks, the Swiss stock exchange BX Swiss is taking the financial market infrastructure for tokenized securities to the next level. In the test, transactions on BX Swiss were settled directly in Swiss francs for the first time via a decentralized public blockchain.
This test was conducted as part of a proof of concept under the auspices of the Capital Markets Technology Association (CMTA). In the process, structured products were issued by Swiss banks Credit Suisse, Pictet and von Tobel in tokenized form as ledger-based securities on the Ethereum test blockchain and then via the BX Swiss trading platform. traded.
In a further step, transactions were settled directly on the blockchain via a globally unique mechanism. For this reason, CMTA has created additional open source smart contracts for bilateral and secure payments without counterparty risk. Cash-side payments in Swiss francs were performed for the first time via a direct technical bridge connecting the Ethereum blockchain with Swiss Interbank Clearing (SIC), the payment system of the Swiss National Bank.
With the proof of concept, BX Swiss has already been able to successfully test the technical underpinnings of the settlement of transactions of tokenized securities against Swiss francs with various banks. A tested payment system on a decentralized public blockchain infrastructure, offering cost advantages along the entire securities value chain (issuance, trade settlement, custody) and an already rapidly growing blockchain. Enables you to tap into the global market potential of your underlying securities.
In order to be able to productively trade tokenized securities in the near future, BX Swiss will continue to require a separate and additional financial market license from the Swiss Financial Market Supervisory Authority FINMA.
“Our long-term goal is to revolutionize securities trading, enable more retail investors to participate in the capital markets, and make regulated trading easier for small businesses. ”
BX Swiss CEO Lucas Bruggeman emphasizes:
“CMTA’s proof of concept is a milestone in cost-effective settlement of transactions in tokenized securities.”
“Swiss parliamentarians have created the regulatory framework necessary for the use of blockchain technology in capital markets. will be able to settle transactions in a decentralized and much more cost-effective manner.”
Matthias Müller, Head of Markets and Services at BX Swiss, said:
“This does not require new Central Bank Digital Currencies (CBDCs) or stablecoins.
The Börse Stuttgart Group, to which BX Swiss belongs, is a regulated infrastructure partner for secure access to cryptocurrencies and tokens.
Featured Image Credit: Compiled from Unsplash