Swiss Stock Exchange Owners to Launch Their Own Stablecoin

The SIX Swiss Exchange, Switzerland’s principal stock exchange, is reportedly developing its own stablecoin, a crypto token that will be pegged 1-to-1 with the Swiss Franc (CHF). 

According to CoinDesk, the Zurich-based stock exchange’s stablecoin will be used to conduct transactions on the SIX Digital Exchange (SDX). Commenting on the initiative, a representative from SIX confirmed: 

Yes, we are currently working on a CHF Stable Coin – so Swiss franc.

Stablecoin May Be Used For Atomic Swaps With Security Tokens

SIX’s management has not yet clarified whether the Swiss franc-based stablecoin will be developed for public or private (or internal) use within the SDX (like J.P. Morgan’s JPM Coin).

As noted by the coin’s developers, the fiat-pegged cryptocurrency may be used to settle transactions involving atomic swaps of security tokens and other financial assets on distributed ledger technology (DLT)-based platforms.

In July of 2018, SIX’s management announced that SDX would become operational during the second half of 2019. Per the exchange’s support team, the SDX will begin providing services by tokenizing shares of common stock and bonds.

Working On Creating Security Tokens

The developers of the SDX platform will also experiment with trading digital representations of other traditional assets. These include fine art and other real-world items which can be tokenized.

In addition to introducing a stablecoin, SDX’s management is also planning on launching a security token offering (STO). According to the exchange’s Chairman, SIX’s developers may introduce their own STO in order to raise funds for various initiatives.

The stock exchange managers of other leading European nations, such as the Frankfurt Stock Exchange’s parent company, Deutsche Börse is currently working on a project that involves tokenizing various assets. Switzerland’s government-backed Swisscom is reportedly working with Deutsche Börse’s on its security token project.

Stablecoins Allow Us To "Automate More Processes On The Blockchain"

The Russian National Settlement Depository (NSD) also revealed recently that it’s planning to introduce its D3 blockchain and supporting cryptoasset DLT network in Switzerland.

Explaining why stablecoins may form an integral part of the future economy, Artem Duvanov, the Head of Innovation and Director at NSD, stated:

Stablecoins backed by central bank (preferably) or bank money will drive adoption of the D3 Ledger and other financial DLT [distributed ledger technology] platforms.

He added:

The reason is very simple – when you have a stable coin INSIDE of the blockchain, you can automate more processes and provide more value with smart contracts. It is not just about [delivery versus payment], it is also about many corporate actions, for example, dividends distribution.

Crypto Rating Council Evaluates Three New Cryptocurrencies as Securities

  • The Crypto Rating Council has released securities ratings for IOTA, Basic Attention Token and USDCoin.
  • The CRC, backed by Coinbase, Kraken and other US crypto firms, supports regulation clarity for the industry.

The Crypto Rating Council (CRC) has evaluated IOTA, Brave's Basic Attention Token (BAT) and the USDC stablecoin over whether they should be classified as securities. 

The CRC, backed by Coinbase, Kraken and other exchanges, is a collection of major United States-based crypto firms established in September 2019. The group advocates for and promotes regulation clarity in the industry of cryptocurrency, including analyzing whether or not certain assets should be classified as securities. 

According to an April 2 post, the CRC released rating scores for IOTA, USDC and BAT, in addition to updating its rating for Maker and Polymath. The scale ranks from 1 to 5 with a lower score correlated to few or no characteristics consistent with treatment as a traditional security. 

BAT was given a rating of 2.00, with the council highlighting the coin’s utility as fully open-sourced and supporting the development and use of the Brave Browser. IOTA also scored 2.00, indicating that the currency is unlikely to be viewed as a security.

USDCoin, a stablecoin backed by Coinbase and Circle, was rated 1.00 by the council, consistent with other stable price-pegged coins such as DAI.  

While the CRC’s determinations have no official impact on the opinions of regulators such as the Securities & Exchange Commission (SEC), they do provide some insight to investors on the state of crypto-assets. 

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