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SDX Breaks through 1 Billion CHF in Digital Asset Transactions

source-logo  financemagnates.com 21 May 2024 09:40, UTC

SIX Digital Exchange (SDX) has announced transactions exceeding 1 billion Swiss Francs (CHF) in digital asset issuance. This was marked by the settlement of a CHF 200 million bond by the World Bank, which was priced on May 15.

The collaboration between the World Bank, Swiss National Bank, and SIX Digital Exchange highlights a collective effort to advance digitalization within capital markets.

Leading in wCBDC Settlements

The participation of key issuers, such as The World Bank, UBS AG, various Swiss municipalities, and SIX Group AG, has played a pivotal role in propelling the Swiss Financial Centre's journey toward digital transformation.

Notably, several issuances have been part of the Swiss National Bank's Project Helvetia Phase III, enabling settlements in Swiss Franc wholesale Central Bank Digital Currency (wCBDC). Switzerland stands out as the singular major financial centre facilitating securities transactions settlement in wCBDC.

David Newns, Head of SIX Digital Exchange, said: “Our objective has always been to seamlessly connect digital and traditional infrastructure, mitigating market fragmentation and facilitating the efficient transition to digital assets. The digital bonds issued to date remain open to the entire investor base as they are listed, traded and settled both on a regulated digital exchange and traditional market infrastructures.”

Adopting DTI Standard for the Digital Asset Market

The financial industry increasingly adopts the Digital Token Identifier (DTI) ISO standard 24165, a unique identifier for digital assets. SDX has become the first private Distributed Ledger Technology infrastructure to adopt the standard developed by the Digital Token Identifier Foundation, as reported by Finance Magnates.

DTIs pinpoint digital ledgers, tokens, and cryptocurrencies, aiding regulators in supervising exchanges, ensuring compliance with anti-money laundering measures, and monitoring risks.

The European Securities and Markets Authority promotes DTI use within the EU's DLT Pilot initiative. SDX's decision to implement DTI across its products marks a milestone. SDX, a part of SIX Swiss Exchange, concluded 2022 with a substantial net profit despite market challenges.