Swiss stock exchange operator SIX Group AG is bringing its digital assets division SDX in-house, ending the brand’s independent identity and merging its operations into the group’s main exchange and post-trade units.
SIX Group, which runs the Swiss and Spanish stock exchanges, will move SDX’s trading, settlement, and custody work into its main business. SIX’s main exchange will handle trading, while settlement and custody will move to SIX Securities Services, its post-trade unit.
SIX moves SDX trading and custody under the main exchange units
Marco Kessler said, “We have seen a lot of innovation happen in the post-trade space, and we wanted to integrate the digital asset capabilities across securities services, starting from custody.” The head of product and business development for digital assets at SIX explained that the company aims to create a unified, robust platform that can manage the entire life cycle of every asset.
SIX claims that using a single connected system will help grow its digital asset business more quickly and make it easier for banks, asset managers, and other financial institutions to adopt blockchain technology. These institutions will be able to utilize the same trusted systems they already rely on. At the same time, the new structure will enable the company to offer all digital asset services, including token issuance, trading, and storage, under one roof.
SIX also mentioned that it will maintain its partnerships with major financial institutions that are testing blockchain in their operations. The company is collaborating with Banque Pictet & Cie SA and Citigroup Inc. to convert traditional assets, such as bonds or shares, into digital tokens that can be traded more easily.
These projects will continue under the company’s post-trade division, SIX Securities Services, as SIX is already well-experienced in secure settlement and custody, and operates under Swiss regulatory standards that protect investors and maintain market stability.
SIX builds a stronger base for blockchain and tokenized assets
SIX became one of the first large exchange operators in the world to launch a fully regulated platform for digital assets in 2021 with the introduction of SIX Digital Exchange (SDX). The platform provided the foundation for trading, settling, and storing tokenized securities, enabling financial institutions to issue and manage these assets through a trusted and secure process that adhered to the same rules as traditional markets.
Over 2.5 billion Swiss francs (about $3.1 billion) worth of digital bonds have been issued on SDX since its launch.
Industry observers believe that this shift to tokenized assets will transform the global financial system. Vlad Tenev, CEO of Robinhood, recently stated that “tokenization is a freight train” that will transform finance everywhere. In June, Robinhood allowed users to trade digital versions of company shares using blockchain technology and its tokenized equities in Europe.
Citigroup and SIX also announced in May that they would collaborate to utilize SDX’s technology to tokenize, settle, and protect assets, including late-stage pre-IPO shares.
SIX is also working with the Swiss National Bank (SNB) on one of the world’s most advanced digital currency experiments, the wholesale central bank digital currency (CBDC) pilot. The project tests how banks can use a digital version of central bank money to settle transactions directly on the blockchain and has been extended until at least June 2027.
SIX will provide the technology and infrastructure for this project, and together with SNB, aims to create a faster and more reliable way for banks to move money and assets across borders.