The main stock exchange of Switzerland, the so-called SIX Swiss Exchange, develops its own stablecoin, a cryptocurrency token which is going to be pegged 1-to-1 with the Swiss Franc or CHF.
Using stablecoins for atomic swaps with security tokens
According to some reports, the stablecoin of the stock exchange based in Zurich is going to be utilized to conduct transactions on the SIX Digital Exchange or SDX. Commenting on this initiative, one representative from SIX confirmed that they are working on a CHF stablecoin right now.
The management of SIX has still not clarified if this coin based on the Swiss franc is going to be developed for private or public use within the SDX, just like the JPM Coin of JP Morgan.
Just like the developers of the coin noted, the fiat-pegged crypto may also be utilized to settle transactions which involve atomic swaps of security tokens, as well as other financial assets on the platforms based on DLT or distributed ledger technology.
Last year in July, the management of SIX announced that SDX is going to become operational during the second half of this year. According to the support team of the exchange, the SDX is going to start providing services by tokenizing shares of conventional bonds and stock.
Working on creating security tokens
The developers of the SDX platform are also going to experiment with trading digital representations of some other traditional assets. They actually include fine art, as well as other real-world items that may be tokenized.
Additionally, to the introduction of a stablecoin, the management of SDX also has some plans on launching the STO or security token offering. According to the chairman of the exchange, the developers of SIX can also introduce their own STO to raise funds for different initiatives.
The stock exchange managers of some other leading nations in Europe, like the parent company of the Frankfurt Stock exchange, Deutsche Börse is right now working on one project which includes different tokenizing assets.
Swisscom of Switzerland, which is backed by the government, works with Deutsche Börse on its security token project.
Automating more processes on the blockchain
NSD or the National Settlement Depository of Russia also revealed in recent times that it has some plans to introduce its D3 blockchain and support crypto assets DLT network in Switzerland.
Giving an explanation on why they may actually form a fundamental part of the future economy, the director and head of innovation at NSD, named Artem Duvanov, stated that the stablecoins which are backed by the central bank or bank money are going to drive adoption of the D3 Ledger, as well as other financial DLT platforms.
He also added that the reason is quite simple – when a person has a stablecoin inside of the blockchain, that person can automate more processes, as well as provide more value with smart contracts. It isn’t just about delivery vs. payment, but it is also about many corporate actions, for instance, dividends distribution.