SDX, the SIX Digital Exchange, has achieved a significant milestone by surpassing 1 billion Swiss Francs (CHF) in digital asset transactions. This achievement was highlighted by the successful settlement of a CHF 200 million bond issued by the World Bank, which took place on May 15.
The collaboration between the World Bank, Swiss National Bank, and SDX showcases a collective effort to drive digitalization within the capital markets. The involvement of key issuers like UBS AG, various Swiss municipalities, and SIX Group AG has also played a crucial role in propelling the Swiss Financial Centre’s digital transformation journey.
Switzerland has distinguished itself as the leading financial center for settlement in wholesale Central Bank Digital Currency (wCBDC), particularly through the Swiss National Bank’s Project Helvetia Phase III. This milestone has facilitated the seamless settlement of several issuances and securities transactions in wCBDC.
David Newns, Head of SDX, emphasized their commitment to bridging the gap between digital and traditional infrastructure, aiming to reduce market fragmentation and facilitate a smooth transition to digital assets. The digital bonds issued on SDX remain accessible to the entire investor base as they are listed, traded, and settled on both regulated digital exchanges and traditional market infrastructures.
In line with industry trends, SDX has embraced the Digital Token Identifier (DTI) ISO standard 24165, which provides a unique identifier for digital assets. By adopting this standard developed by the Digital Token Identifier Foundation, SDX has become the first private Distributed Ledger Technology infrastructure to do so. DTIs play a crucial role in aiding regulators in supervising exchanges, ensuring compliance with anti-money laundering measures, and monitoring risks.
The European Securities and Markets Authority has been promoting the use of DTIs within the EU’s DLT Pilot initiative. Therefore, SDX’s decision to implement DTI across its products marks a significant milestone for the company. Despite market challenges, SDX, a subsidiary of SIX Swiss Exchange, concluded 2022 with a substantial net profit.