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The IDO for its native SDX security tokens will take place next year in mid-2020 and the issuance of tokens will happen on an enterprise-grade blockchain built using R3’s Corda technology.
In the latest development, Switzerland-based SIX Digital Exchange (SDX) has invited financial institutions from across the globe to back its Initial Digital Offering (IDO). SDX is a blockchain-based utility that is completely owned by the Swiss stock exchange SIX Group.
The SIX Digital Exchange plans to launch its IDO in mid-2020. This will be just similar to a traditional IPO except for the fact that the shares will be in the form of security tokens available on the SDX platform.
The consortium of investors joining for SIX IDO will include global banking institutions along with other financial market infrastructure providers. Speaking to CoinDesk, head of SDX, Thomas Kindler said:
“We are not just looking to Abu Dhabi sovereign wealth fund to give us money. We are looking at our clients to invest, but at the same time commit business and help us validate what we built and get it off the ground. The key focus is not money; it’s money linked to business and validation of the business model.”
Growing Interest for Security Tokens
Kindler says that there’s clearly a growing interest for security tokens in the market. However, it is very difficult to tokenize equity in the form of unlisted shares in a fully regulated environment. But Kindler is confident that the SIX Group will be successful in having a native security token SDX in the market. Speaking on the project execution, Kindler said:
“What we foresee are two levels. On one large level … we are looking at, say, four or five-ish large investors. Then potentially ten-ish smaller investors. As a first step, we are looking at an international consortium of investors. The second step would be our own issuance.”
The listing of SDX token will be done on an enterprise-grade blockchain built using R3‘s Corda technology. Last week, the SIX Group announced that it is currently testing the pilot version of its exchange and a full launch shall be expected by the Q4 of 2020.
“The launch of this prototype is a major milestone in creating a credible digital infrastructure for moving our industry forward. We are now one step closer to demonstrating the viability of our vision for the financial markets of the future and, ultimately, for the way people and businesses access capital.”