BX Digital has secured regulatory approval from Switzerland’s market regulator to establish a digital asset trading and settlement platform, marking a pioneering development in the country.
The license granted by the Financial Market Supervisory Authority (FINMA) enables the Zurich-based firm to act as a distributed ledger technology (DLT) trading facility, enhancing the efficiency of transactions for tokenized financial instruments.
Utilizing the Ethereum blockchain, BX Digital aims to enable direct asset transfers without the need for intermediaries such as central securities depositories, as highlighted in their announcement.
This framework is designed to facilitate quicker, more cost-effective transactions while promoting the trading of tokenized shares, bonds, and funds among various market players, including banks and securities firms.
“There has been a noticeable absence of regulated secondary markets until now,” stated CEO Lidia Kurt. The license “represents a significant milestone in establishing new benchmarks for capital market efficiency and accessibility in the digital asset arena.”
A notable aspect of this system is its link to the payment network of the Swiss National Bank, ensuring that transactions are settled in Swiss francs under delivery versus payment agreements. To bolster liquidity, BX Digital is collaborating with market makers and has attracted considerable interest from banks and issuers, according to Lucas Bruggeman, CEO of affiliated company BX Swiss.
BX Digital operates under the Boerse Stuttgart Group, the sixth-largest exchange group in Europe, which views this initiative as part of a wider effort to modernize capital markets through blockchain technology. The platform is required to meet certain regulatory criteria before it begins client operations.
CEO Matthias Völkel of Boerse Stuttgart Group emphasized that BX Digital is just the beginning, with plans for a “digital European issuance and settlement platform” to be introduced shortly. Earlier this year, the group revealed that crypto activities constitute 25% of its revenue.
Disclaimer: Portions of this article were generated with the help of AI tools and subsequently reviewed by our editorial team to ensure accuracy and compliance with our standards.