Swiss financial infrastructure provider SIX has launched its Digital Collateral Service (DCS), allowing financial institutions to post cryptocurrency assets as collateral alongside traditional securities. The service aims to streamline operations for firms managing both digital and conventional assets, enabling them to use a single collateral pool to cover exposures.
By integrating cryptocurrency into collateral management, SIX seeks to enhance portfolio efficiency and reduce counterparty risk. The initiative responds to growing institutional interest in digital assets, particularly among risk-conscious investors. The service is built on expertise from SIX’s international custody business and its digital asset arm, SIX Digital Exchange (SDX).
Christian Geiger, head of clients and products for Securities Finance at SIX, highlights the firm’s commitment to meeting evolving market needs. “With the growing institutional appetite for digital assets, we are committed to meeting the needs of this highly risk-conscious investor segment,” he says.
Strengthening risk management
SIX emphasises that its account structure provides default protection for collateral, enhancing security and encouraging broader institutional participation in cryptocurrency trading. David Newns, head of SDX, sees crypto’s role in collateral management expanding: “Our new and fully integrated solution empowers market participants to optimise their collateral usage, with built-in risk management safeguards.”
