First five trading participants for Swiss DLT trading system known

BX Digital, which received the first FINMA license for a distributed ledger Technology (DLT) trading system in mid-March, announced the first five trading participants. The starting signal should take place in the coming months.

The Swiss banks Sygnum Bank, Incore Bank and Hypothekarbank Lenzburg as well as the ISP Group and Euwax AG Werbapothaus as a broker of the Stuttgart group are currently in the onboarding process for approval as a trading participant at BX Digital. The participants intend to actively participate in the regulated trade of digital assets about this new market infrastructure with the live circuit of the trading system, according to a media release. This is an important milestone on the way to a broadly supported institutional ecosystem for digital assets in Switzerland.

First DLT trading system in Switzerland

A DLT trading system is a platform that uses Distributed-Ledger technology (DLT) for trading financial investments such as securities on a blockchain. It ensures transparent, secure and efficient exchange of these assets in compliance with Swiss finances. In Switzerland, the approval of such platforms 2021 was anchored in the DLT law. The Finma gave until March this year before she The BX Swiss was the first provider to give a license.

The central element of the new DLT trading system is direct processing to Swiss francs and the transfer of assets via a public blockchain – without the need for intermediate and central storage. This saves time and costs, and enables the trade of tokenized assets such as stocks, bonds and funds between market participants such as banks and securities houses. This simplifies processes considerably and at the same time ensures maximum security and control over the assets. Payment and financial transfer are based on tested Delivery Versus Payment (DVP) agreements. The direct connection to the Swiss National Bank payment system enables seamless integration into existing banking systems.

Start in the coming months

All partners bring comprehensive experience in the digital asset business and want to set a clear signal for their commitment to the further development of the digital financial center with an early participant, the media release continues. Their participation underlines trust in the technological performance and the regulatory conformity of the system. A crucial step is taken with the start of onboarding. The go-live of the trading system expects BX Swiss over the next few months and mark the transition from the construction phase into the active market phase.

“We are very happy about the trust of our partners. Together we will set up a new chapter in the digital capital market. This is the basis for the start of the start of our trading system. With these first participants, we create the basis for a liquid and trustworthy ecosystem that will sustainably shape the digital financial center.” – Lidia Kurt, Chief Executive Officer der BX Digital