BX Digital, a subsidiary of Boerse Stuttgart, has secured conditional approval from Swiss regulatory authorities to implement a blockchain-based settlement system for digital assets.
The core feature of this new distributed ledger technology (DLT) trading platform is its capability to settle transactions in Swiss francs, utilizing the Ethereum public blockchain for asset transfers, thereby eliminating the need for intermediaries like central securities depositories (CSDs).
Transactions at BX Digital are managed according to verified delivery versus payment (DvP) agreements, with the cash leg of the settlement facilitated through a direct connection to the Swiss National Bank’s payment system.
Lucas Bruggeman, the CEO of BX Swiss Exchange and Chairman of BX Digital, highlighted that this innovative facility will provide participants with regulatory clarity, establish stringent quality standards for trading, and ensure the active involvement of market makers. “The level of interest is tremendous,” he stated. “We have already attracted a diverse ecosystem of partners and generated excitement among banks and issuers regarding our new financial market infrastructure.”
Matthias Voelkel, CEO of Boerse Stuttgart, expressed the intention to extend the system’s reach beyond Switzerland. “BX Digital marks the initial step, and we are set to introduce our digital European issuance and settlement platform shortly,” he remarked.