The owner of the Swiss stock exchange, known as SIX Group, is about to release a fully regulated digital assets platform which is known as the Swiss Digital Asset Exchange.
Demand from institutional clients about legitimizing and bringing assets safety into play
This new platform, which is going to serve as an avenue for raising funds for startups, is actually designed to fill the niche between Initial Public Offerings (IPOs) and the crowdfunding space.
The head of securities and exchanges of SIX Group, named Thomas Zeeb, in one conversation explained why the company did not instead go with a crypto trading platform. As he stated, SIX Group did not prioritize the creation of a trading platform as there are a lot of existing exchanges which are already serving that purpose.
The target clients are actually expected to be startups which would otherwise have opted for funding from venture capital firms or some private equity. The new platform, Swiss Digital Assets Exchange, is actually designed to serve the needs of such clients with its platform.
The idea actually is that institutional investors are going to patronize the service as they are likely to be more comfortable with a regulated, as well as mainstream digital asset platform. As Zeeb explained, there is actually demand from institutional clients to find a way of legitimizing and bringing assets safety into play.
As a surprise, Zeeb did not have a lot of positive remarks to make about Bitcoin, which in his opinion had little backing it and also does not have a good reputation.
Traditional market has risky and problematic securities
However, this was no reason to avoid getting involved with some digital assets as they were “here to stay.” Zeeb also believes that Bitcoin, as well as Initial Coin Offerings (ICOs) and some other digital assets, could probably become just another option for asset managers as they become more regulated, as well as penetrate the mainstream.
To take his point to an end, he also explained that derivatives were not mainstream financial instruments in the early 1990s. With some more regulation, as well as the understanding of what the asset class was, they have become well-known and commonly utilized assets in the traditional market.
Also, Zeeb added that the traditional market had securities which could be considered risky, as well as problematic. He said that no matter if you are in a conventional or a digital market, there has always been listings and securities which you can name US and Canadian penny shares, Australian mining shares…there have always been listings which are hugely risky and in some cases potentially problematic.
Tokenization securities and exchange-traded funds
Zeeb has also mentioned that he could foresee the tokenization of some exchange-traded funds or ETFs, as well as securities which already exist.
The use of art galleries and museums as examples, he argued that collections can also be tokenized with the value of the tokens which are determined by things such as auction results. He thinks that this could probably enable these organizations to survive without support from the government.