BX Digital, the Swiss subsidiary of the Boerse Stuttgart, has received approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate a Distributed Ledger Technology (DLT) trading facility, becoming the first regulated financial market infrastructure in Switzerland for digital asset trading and settlement.
The platform enables trading and settlement of tokenised assets, including shares, bonds, and funds. Using the Ethereum blockchain, it removes the need for intermediaries such as central securities depositories (CSDs), aiming to increase efficiency and reduce costs. Transactions settle in Swiss francs through a direct link to the Swiss National Bank’s payment system, following a delivery-versus-payment (DvP) model to minimise counterparty risk.
Market impact and challenges
Lidia Kurt, CEO of BX Digital, noted that regulated secondary markets for digital assets have been lacking, and this development could set new standards for capital market efficiency. However, the success of such a platform depends on market adoption and the ability to provide sufficient liquidity.
BX Digital plans to ensure market stability through regulatory frameworks and the presence of market makers. The company is working with its sister exchange, BX Swiss, to create a functional trading environment, though it remains to be seen how quickly institutional players will adopt the new infrastructure.
Larger strategy
BX Digital is part of the Boerse Stuttgart Group, Europe’s sixth-largest exchange group, which aims to expand blockchain-based financial market infrastructure across Europe. Matthias Voelkel, CEO of Boerse Stuttgart Group, indicated that BX Digital is the first step in a broader initiative to establish a digital European issuance and settlement platform.
While BX Digital has secured FINMA approval, its launch is contingent on fulfilling outstanding regulatory requirements. The company will begin operations once these conditions are met, ensuring compliance with Swiss financial regulations.
