Swiss Stock Exchange sets up consortium to develop SDX asset tokenization platform

The Swiss Stock Exchange (SIX) is creating a consortium of financial institutions to support the development and launch of its tokenization platform for real assets.

The SDX platform, wholly owned by the operator of the SIX Group exchange, plans to sell tokenized shares (IDO) next year, similar to the IPO and STO procedures. This will be the first tokenization of shares of a large stock exchange.

SIX first announced plans to host IDO in May of this year and planned to conduct a token sale in 2020. Now the plans have become more specific, and the issue of tokens is planned in the summer of 2020. The timing of the project will depend on how successful the activities of the consortium to attract investment will be.

The list of companies included in the consortium is currently unknown, but according to the head of SDX, Thomas Kindler (Thomas Kindler), it mainly includes customers and partners of the exchange – banks, trading companies and market infrastructure operators. Also, the planned investment amount is not announced, but SIX plans to retain a controlling stake in SDX.

The internal SDX token will operate on its own corporate blockchain based on R3 Corda technology and will be used in the trading and settlement operations of the exchange, similar to cryptocurrency exchange tokens such as BNB, HT, etc.

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After holding its own token sale on SDX, tokenized shares of other listed companies will be issued. In the future, tokenization will cover bonds, real estate funds and structural investment products. The exchange will also create a centralized depository (CSD) for digital assets, which can subsequently become the standard for tokenization of stock market assets on other exchanges around the world.

Previously, the stock exchanges of Gibraltar and Seychelles announced the creation of platforms for the tokenization of shares and other securities, but the Swiss stock exchange significantly surpasses them in terms of trading volumes and technical level. The successful launch of SDX may be a precedent from which tokenization of global financial markets will begin.