Cryptocurrency trading will not be part of the features of Swiss stock exchange’s new digital asset platform. This decision is not due to the lack of capacity to implement such, but basically an issue of priority.
“The capability is there to do it, but to be honest it’s not a priority. There are plenty of exchanges currently providing bitcoin trading services”, says Thomas Zeeb, the head of securities and exchanges at the Swiss stock exchange owner SIX Group
As reported on Business Insider, Zeeb explains that the new exchange would plug the funding gap between crowdfunding and initial public offerings. This is ultimately aimed at providing an environment where institutional investors can feel safe to participate actively.
The Swiss exchange operator SIX first announced a proposed launch of its new crypto-initiative earlier this year. In this announcement, the establishment claimed this initiative to be the first market infrastructure in the world to offer a fully integrated end to end trading, settlement and custody service for digital assets. However, Zeeb expresses concern about the current reputation of Bitcoin, which is suggestive towards his establishment’s present stand.
“There were still “reputational” issues surrounding Bitcoin. There’s actually nothing Behind bitcoin other than a lot of hope and hype”, he says.
Incidentally, this action by SIX does not in anyway disrepute or disregard the fact digital assets like Bitcoin have come to stay. As a matter of fact, this may simply qualify the emerging processes as a going concern.
Zeeb relates the current situation of the digital market ecosystem to what was obtainable with derivatives in the 90’s. He made note of how derivatives operated on the fringes back then, leading to contrasting outcomes for participants within the markets. However, gradually regulation was achieved, and today every asset manager has derivatives as part of his toolkit.
In the case of digital assets, Zeeb believes that things will happen quicker than we had with derivatives. “I’m absolutely convinced that digital assets, as well as a digitalisation of existing assets, is going to come a lot faster than the 30 years it’s taken derivatives to be everywhere, he says. “It will go in maybe five years”.
SIX Digital Exchange (SDX) intends to plug the funding gap between crowdfunding and initial public offerings. This will satisfy the demand by institutional clients who are seeking for how to legitimize and bring digital asset into play. The platform will boost confidence in the ecosystem and enhance the safety of such big players in the market.
Going forward, Zeeb sees a future where tokenization of existing assets will become a popular practice. Such would include existing securities and exchange-traded funds (ETFs), art galleries and other forms of exotic assets. This system will allow for a more flexible market that will encourage more liquidity my allowing fractional ownership of such assets.
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Last modified: May 20, 2020 6:05 PM