SIX is launching new service for Crypto Collateral Management | News | Current

The Swiss stock exchange operator SIX enables her users to store cryptocurrencies as consecration. It uses the infrastructure of the digital exchange SDX.

Companies that keep bonds and Bitcoin, for example, could now use both as consecration (collateral) in order to cover a single risk, the statement says. This leads to a significant simplification of the processes for dealers and their counterparties. The solution also increases the efficiency of portfolio management and minimizes the opposite party risk, the SIX is convinced.

The crypto custody infrastructure of the SIX digital daughter SDX offers users improved protective mechanisms, it is said. This introduces an additional security level that is a prerequisite for many institutional investors to increase their participation in the trade in cryptocurrencies.

David Newn's, Head Sdx emphasizes for the introduction of the new offer: «The role of cryptocurrencies in collateral management is becoming increasingly important. Our new, fully integrated service allows products, actors, brokers and market makers to optimize the use of their collateral – be it for cryptocurrencies or traditional securities. The solution offers built-in risk management protection measures. This allows financial institutions to use crypto collaterals to a greater extent. »