Future of Finance


SDX eyes tokenisation market growth opportunities in the SME sector

Four years have elapsed since the Swiss stock exchange (SIX) took the bold decision in 2018 to respond to the challenge tokenisation has issued to traditional securities exchanges. SIX opted to build alongside its existing infrastructure an entirely new, blockchain-based trading, settlement and custody platform for digital assets. In September 2021 the SIX Digital Exchange (SDX) received its operating licence from the Swiss regulator, the Financial Market Supervisory Authority (FINMA) – itself now part of the SDX network – and opened for business. The leadership of SDX also knew they could count on a supportive legal environment in Switzerland, and SDX has since November 2021 hosted digital bonds both for its parent company[1] and UBS that can be traded and settled at both SDX and SIX, and launched a service for cryptocurrency investors to earn a return on their holdings of cryptocurrencies[2]. But its principal focus now is capital-raising for small and medium-sized enterprises (SMEs).

Dominic Hobson, co-founder of Future of Finance, spoke to Massimo Butti, head of equity at SDX, about the range of services SMEs require to issue tokenised securities successfully, the partnerships that SDX is forming to build a supportive eco-system for issuers and how the remaining obstacles to the self-sustaining growth of the tokenisation markets can be cleared.

[1] See the interview with Stefan Bosshard, product head, fixed income, at   SDX, at: https://futureoffinance.biz/2022/02/16/sdx-explains-the-challenges-of-pioneering-a-regulated-digital-bond-issue/

[2] See the interview with Alex Smith, crypto product lead at SDX, at: https://futureoffinance.biz/2022/08/30/sdx-web3-services-non-custodial-ethereum-staking-service-is-live/