Preemptive New York counterparts, SIX or the first traditional exchange to issue coins

When digital currency exchanges are smashed by hackers, IEOs, etc., traditional exchanges are also trying to grab the "cake" of the encryption world, not only will issue exchange tokens, but will also be online similar to "IEO" (IDO) business. .

Recently, according to Swiss media Finews, Thomas Zeeb, executive of the Swiss traditional stock exchange SIX, said that the upcoming SIX digital exchange (hereinafter referred to as SDX) will issue its own token and will Providing IDO (Initial Digital Offering) service – it may be the first exchange in the world to determine the issuance of Token, which has really grabbed the limelight of a US counterpart. For the project side, IDO has also added a "compliance". Fundraising channels.

The SIX Exchange is currently ranked in the top 15 in the world and the fourth in Europe. Its daily trading volume is about 5.19 billion Swiss francs (about 5.18 billion US dollars) and its market value is about 1.6 trillion US dollars. One of the important players.

1. Steadily promote the digital asset exchange

In fact, the SIX Stock Exchange has been lurking in the encryption world for a long time.

As early as July 2018, the SIX Stock Exchange announced in its official website that it would launch the world's first exchange that provides fully integrated end-to-end trading, settlement, and custody services for digital assets. The statement said it will provide a secure environment for the issuance and trading of digital assets, and will enable existing securities and non-bank collateral assets to be certifiable, making previously untradeable assets tradable. The service will be based primarily on distributed ledger technology.

According to the SIX exchange at the time, CoinDesk said that SDX will be the same as the SIX exchange itself and should be subject to the same regulatory principles. And the launch of the digital asset exchange will be divided into these steps: build a compliant trading platform – pass the bank-guaranteed assets to pass – and then pass the non-bank-guaranteed assets.

The recently disclosed SDX is about to issue Token with the upcoming IDO, or will complete the relevant tests by the end of this summer, and may start with SDX certification by starting with stocks, bonds, funds and structured products.

Since then, SDX and its related native Token and IDO services are expected to go live in early 2020 and officially begin the trial of existing asset certification by 2021.

Although Gibs told Finews that the anonymity of cryptographic assets such as Bitcoin is contrary to legal regulations such as anti-money laundering laws and transaction monitoring procedures, SDX is not considered for cryptocurrency transactions.

But his remarks indicate that SDX has had a lot of exploration on how to create interoperability between different chains. If the regulatory environment is adjusted, they will establish the necessary links between SDX and other digital currency exchanges.

In order to promote the landing of SDX, SIX Exchange also chose to cooperate with R3 to purchase the latter's Corda Enterprise (Corda Enterprise) as the underlying platform of SDX; on the other hand, the chairman of the SIX exchange, Romeo Rachel (Romeo Lacher) also told Reuters that they will raise funds for SDX through STO, which also indicates that the above-mentioned SDX Token is a securities token.

At the same time, SIX has also accelerated the process of recruiting for SDX. Executives said that the past two years have invested tens of millions of dollars for SDX. It plans to recruit 30 more staff before the end of this year to expand the entire workforce. It is around 100.

Although due to regulatory and liquidity considerations, the traditional assets of the relevant certification will only be open to Swiss residents for the time being, but this is undoubtedly an important test for the encryption world, and its actions will become other traditional exchanges. Reference.

In addition to promoting the formation of trading infrastructure, SIX is also committed to enriching the “content ecosystem”.

2. Carefully build a comprehensive trading variety

If the traditional securities assets of Tonghuan are only half of the body invested in the encryption world, then the index trading products (ETP) that directly open the cryptocurrency in SIX will be the beginning of the integration into the encryption world.

ETP is distinguished from ETF's index trading products, which are exchange-traded funds that track the performance of the index and are regulated by Swiss regulators; the former is a mortgage, interest-free, bearer bond that can be used on a regular or leverage basis. Assets (usually from the commodity industry). Like ETFs, they can trade in multiple market segments, but from a legal perspective, they are not funds and are therefore not regulated by Swiss financial institutions.

In November 2018, AMUN, the ETP product distribution partner designated by SIX Exchange, announced that it will launch financial derivatives of five cryptocurrency indices including Bitcoin, Ripple, Ethereum, Bitcoin cash and Litecoin. The proportion of various assets in the index will be adjusted due to market changes.

Proportion of cryptocurrency index trading products (as of 2019.5.8) | Source: AMUN official website

According to AMUN's official website, as of May 8, 2019, its index consists of: Bitcoin ETP accounted for 51%, Ethereum ETP accounted for 15.82%, and Ripple ETP accounted for 23.02%, while Bitcoin cash and Litecoin will They accounted for 4.82% and 4.9% respectively.

As of press time, AMUN official website shows that the products currently on the line are: Bitcoin ETP (on February 26, 2019), Ethereum ETP (on March 5, 2019), and Ripple ETP (April 2, 2019) online) .

From the SIX exchange executives' speeches and SIX's efforts to promote products, the idea is:

Whether it's infrastructure or ecology, it's not hard to see the efforts of the SIX exchange, but this does not guarantee that it will become a leader.

3. The fierce "dark war" of traditional exchanges

Previously, PANews reported that the New York Stock Exchange and Nasdaq, both of which had the highest market value and total transaction volume, continued to force digital currency exchanges, and also included the mainstream cryptocurrency index in their platforms.

Bakkt, the digital exchange of the New York Stock Exchange, received a huge financing of US$182 million from the beginning of this year. Although it has not been able to go online due to various obstacles, its CEO bluntly stated that “the current market environment has made us cheaper. The price of the acquisition of quality assets, more time to prepare."

On the Nasdaq side, its CEO Adena said in April last year that Nasdaq may consider becoming a cryptocurrency exchange for a certain period of time. In February 2019, the Bitcoin Index (BLX) and the Ethereum Index (ELX) were integrated into the Nasdaq index.

In addition, relatively small competitors are the Toronto Stock Exchange and the Australian Stock Exchange. The former announced in March 2018 that it would launch a "Shorcan Digital Currency Network subsidiary" and issue a cryptocurrency brokerage service;

The Australian side is expected to complete its deployment of its distributed ledger platform by 2021 to replace its existing clearing house clearing and settlement system.

Wen | Wang Zelong Editor | Tong Source | PANews