Swiss Stock Exchange SIX launches digital asset trading test platform to build a trusted digital infrastructure based on DLT

According to Coindesk's September 23 report, the Swiss stock exchange SIX launched its beta platform for digital assets tailored to the exchange and central securities custody (CSD).


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According to an email received by CoinDesk, the Exchange said in a statement that the prototype platform was launched under its digital asset subsidiary SIX Digital Exchange (SDX) and is expected to be fully launched in the fourth quarter of 2020. The platform will add more features.

The platform's current goal is to "show the future of financial markets" and get feedback from early testers.

SDX further stated that it plans to demonstrate that a distributed book-based technology (DLT)-based CSD can be "integrated with a central order book-based stock exchange model to ensure fair market conditions for all."

Thomas Zeeb, executive board member of SIX, chairman and member of SDX, said:

“The launch of this prototype is an important milestone that has created a credible digital infrastructure for the advancement of our industry. Now, we are a step closer to demonstrating our vision for the future financial market vision. Ultimately, The way people and businesses acquire capital will undergo subversive changes."

The "test case" platform will include early functions such as issuing securities-type digital tokens, real-time transactions, and instant billing.

The announcement said, "This will include the cash portion of the transaction, which will use the concept of token payment and monitoring of transactions between specific DLT member nodes through a distributed portal."

SDX's trading configuration will be similar to SIX's infrastructure, while token distribution will leverage SIX's Connexor reporting services and features.

Ultimately, SDX's goal is to achieve instant settlement, no counterparty risk, and no central counterparty to provide default fund collateral. SDX said: "This means that if the buyer and the seller have the cash and assets needed to complete the transaction, the settlement will proceed immediately."

The second phase of the prototype will receive feedback and improvements from this initial phase and is expected to be completed in the “months to come”. According to SDX, it will also add the first post-trade and digital hosting capabilities, and exchange users will be able to save their assets on SDX in a "distributed manner" and access them via a private key.