BX Digital wins three Swiss banks and two securities firms for its new DLT trading facility

BX Digital, which received the first FINMA licence for a Distributed Ledger Technology (DLT) trading facility in mid-March, has announced the first five trading participants.

Swiss banks Sygnum Bank, Incore Bank and Hypothekarbank Lenzburg, as well as securities firm ISP Group and EUWAX AG, broker for the Boerse Stuttgart Group, are currently in the onboarding process to become trading participants on BX Digital. They intend to actively participate in the regulated trading of digital assets on this new market infrastructure once the trading system goes live - an important milestone on the way to a broad-based institutional ecosystem for digital assets in Switzerland.

All of the partners have extensive experience in the digital asset business and through their early participation, aim to send a clear signal of their commitment to advancing the digital financial ecosystem. Their participation underlines their confidence in the technological capabilities and regulatory compliance of the infrastructure.

‘We are truly grateful for the trust our partners have placed in us. Together we are opening a new chapter in the digital capital market. This marks a key milestone on the path to launching our trading venue. With these first participants, we are creating the basis for a liquid and trustworthy ecosystem that will have a lasting impact on the digital financial centre,’ says Lidia Kurt, Chief Executive Officer of BX Digital.

The central element of the new DLT trading facility is the settlement in Swiss francs and the transfer of assets on a public blockchain – without the need for intermediaries such as central securities depositories (CSDs). This not only saves time and money but also enables the trading of tokenised assets such as shares, bonds and funds to be traded between market participants such as banks and securities firms. This greatly simplifies processes while ensuring the highest level of security and control over assets. Payments and asset transfers at BX Digital are based on verified delivery versus payment (DvP) agreements. A direct connection to the Swiss National Bank's payment system enables seamless integration with existing banking systems.

The start of onboarding is a crucial step - the trading system is expected to go live in the coming months, marking the transition from a development phase to an active market phase.