By
Mayowa Adebajo
April 12th, 2024
SIX is going to create its own Swiss franc-pegged stablecoin that will help to facilitate transactions on the SIX Digital Exchange (SDX).
Just recently, it has been revealed that SIX, the Swiss national stock exchange group, is planning to introduce its own stablecoin. It will be pegged to the Swiss franc and will be used in transactions on the SIX Digital Exchange (SDX).
Last year, we could observe an enormous interest in stablecoins which can be partially explained by negative trends on the crypto market. Though the situation has changed for the better, the interest in stablecoins still exists.
The news about the exchange’s work on creating its Swiss franc-pegged stable coin has been confirmed by a SIX spokesman, however, any further details haven’t been provided. For example, it is still unclear whether this coin would be publicly accessible and be traded on exchanges or it would be intended for private use only, just like JPM Coin offered by JPMorgan Chase.
SIX Digital Exchange
From the company they announced that SIX Digital Exchange would be launched in the second half of 2019 and it would offer services including tokenizing stocks and bonds. Nevertheless, it is expected that later it will explore the potential of digital versions of other physical assets including fine art.
Security token offerings (STOs) are also in the center of SDX’s attention. There were even some talks about a possibility that SIX itself would raise some funds via an STO.
While it doesn’t seem that SIX and SDX will stop on their road of crypto innovations, they are also inspiring other platforms to explore this space pushing the development of blockchain industry in the country. Deutsche Börse, that is the parent company of the Frankfurt Stock Exchange, is now cooperating with Swiss government-backed Swisscom examining the potential of tokenization in Switzerland.
In addition, Russia’s National Settlement Depository (NSD) has chosen Switzerland to launch its D3 blockchain and crypto ledger.
Why Stablecoins?
Experts have a clear explanation of why more and more financial structures are turning to stabelcoins. For example, head of innovation and a director at Russia’s NSD, Artem Duvanov noted that their decentralized digital depository, D3, will be purchasing a stablecoin that will be suitable to be added to the platform. In this context, he mentioned Gemini’s GUSD.
“Stablecoins backed by central bank (preferably) or bank money will drive adoption of D3Ledger and other financial DLT platforms,” Duvanov said.
He explained that having a stablecoin inside of your blockchain, you have a possibility to streamline many processes via making them automated. In addition, it is possible to offer more value with smart contracts.