SIX Group has joined a list of investors that acquired different stakes in Omniex, which develops technology and services to make it easier for financial institutions to trade cryptocurrencies. The operator of the Swiss Stock Exchange hasn’t disclosed the amount of its investment in Omniex but said the deal involves a partnership that provides a gateway to global crypto exchanges and OTC market makers for SIX and its clients.
This collaboration will allow SIX clients to get a “standardized and secure access” to trade cryptocurrencies and other digital assets, the exchange said.
While interest in the virtual asset class has grown, the sector still lacks the same level of market infrastructure available to investors in other asset classes. As such, the new deal handles some of its unique market challenges, including connectivity, features, and high-performance trading experience, for institutions seeking exposure to crypto-assets.
“Together with SIX we aim to offer an end-to-end solution for the trading and settlement of digital assets, including the SIX Digital Exchange (SDX), once operationally live. It will still take some time, but the cornerstones are in place to accelerate the broader adoption of natively digitalized assets,” said Hu Liang, CEO and co-founder Omniex.
The Omniex platform provides an end-to-end solution for portfolio and risk management, trade execution, and compliance, as well as algorithmic execution and smart order routing services.
Omniex, which has offices in San Francisco and California, says the crypto assets have many unique attributes not seen in other financial markets. Thus it has built its platform to account for the nuances of these novel assets.
Beyond its portfolio and order management systems, Omniex solutions enable direct market access and connectivity to the liquidity venues for crypto-assets, including multiple exchanges and OTC desks.
SIX plans to launch its IDO in mid-2020
The investment comes as SIX prepares to launch its new blockchain-powered exchange later this year. Dubbed SIX Digital Exchange (SDX), the platform projects a launch date for its Initial Digital Offering (IDO) in mid-2020.
By comparison, SIX’s platform will initially introduce selected stocks in cooperation with Credit Suisse, JPMorgan, and Citibank. When fully launched, stocks will be followed by bonds and exchange-traded funds, as well as tokenizing other securities and non-tradeable assets such as paintings or vintage cars. The digitalization of each asset would go through a rigorous review process before adding it to the exchange.
Thomas Zeeb, head securities & exchanges at SIX, further states: “We see a growing need in the market to access crypto currencies. Our new collaboration will provide a standardized and secure gateway via SIX as the trusted partner of the financial industry. With SDX as the digital exchange infrastructure in development, the collaboration with Omniex to deliver the front end for clients, both for existing crypto currencies, as well as in future for SDX-listed assets, is an important addition to the digital ecosystem.”