The Swiss national stock exchange group, SIX is reportedly working on creating its own “stablecoin,” a cryptocurrency pegged to the Swiss franc in order to facilitate transactions on the SIX Digital Exchange (SDX), as reported by CoinDesk.
As per a report, SIX confirmed the move in an email to the publication:
“Yes, we are currently working on a CHF Stable Coin – so Swiss franc.”
The firm did not provide any further detail about the new token, whether the Swiss franc-backed coins would be for private use within SDX (like JPMorgan Chase’s feted JPM Coin) or will it be added to the cryptocurrency ecosystem. Within SDX, a fiat-backed token could purportedly be used to perform tasks such as atomic swaps of tokenized securities and other assets on the blockchain.
By Leaps and Bounds
SIX has been progressing with leaps and bounds in the crypto space. Last year in July, the firm stated that SDX would be in operation in the second half of 2019. Initially started by tokenizing stocks and bonds and then moving on to exploring digital versions of other physical assets like fine art.
As per a Reuters report, SDX is also focusing on so-called security token offerings (STOs) and the exchange’s chairman suggested that SIX might even raise some funds itself via an STO. With both SIX and SDX pushing and pulling the boundaries and limitation of the ecosystem, it has encouraged other digital asset platforms as well.
Notably, the parent company of the Frankfurt Stock Exchange, Deutsche Börse, is working with Swiss government-backed Swisscom to test-drive tokenization in Switzerland.