SIX, Switzerland’s stock exchange, plans a European crypto trading platform to meet institutional demand for digital assets.
Swiss Stock exchange SIX is looking to create a base in Europe for trading cryptocurrency, allowing it to challenge more established crypto exchanges. SIX aims to leverage the increasing institutional demand for digital assets.
The group plans to capitalize on its positive reputation and the favorable regulatory environment for cryptocurrencies in Switzerland to attract traditional investors. Bjørn Sibbern, global head of exchanges at SIX Group, noted that cryptocurrency has grown to become a well-known asset, and they are looking into the possibility of creating a platform where they can help make trading more accessible for users. Bjørn said:
“Crypto has become more and more a recognised asset class…a platform where we can help facilitate trading, whether it’s [spot] crypto or whether it’s derivatives”
The group’s global exchange head further mentioned that they are seeking different ways to expand their reach to Europe and are considering crypto to be a part of it. He noted that it will only be available to institutional investors, such as asset managers, after getting the venue. He said:
“We are looking at other ways for us to expand in Europe, and as a part of that, we are also looking at [whether] crypto should be a part of it… We see the trend that more and more global banks and institutions are looking at crypto.”
SIX isn’t the first major financial institution that would own a crypto exchange platform; institutions such as Deutsche Boerse, Nomura, and Standard Chartered have developed theirs. However, the situation isn’t generally good, as some companies have also left the market. For instance, CBOE Global Markets closed its spot crypto exchange this year due to regulatory uncertainty.
The Swiss’s company decision to try out a crypto exchange could be traced to the growing institutional interest in digital assets. The approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission has increased retail and institutional interest in the crypto market, causing them to accumulate more digital assets.
Expanding Horizons: From Digital Bonds to Cryptocurrencies
Sibbern further added that while they plan on a crypto exchange, they could also consider expanding their existing digital exchange, which has listed several digital bonds since 2018. The group is considering expanding that idea to include cryptocurrency trading.
The Swiss exchange operator starting crypto trading would be a big step for the company. It would be another win on top of its achievements this year, such as facilitating some of Europe’s largest initial public offerings (IPOs), including those for the Spanish beauty group Puig and the dermatology group Galderma.
The move by SIX to kickstart the crypto exchange further shows that crypto is slowly gaining more ground and is becoming a more recognized asset in the financial market, which has caused major financial institutions to start accumulating it.
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