BX Digital from Boerse Stuttgart Secures Approval from FINMA for Digital Asset Trading
The innovative platform aims to enhance capital market efficiency by utilizing blockchain technology for digital asset trading.
What You Need to Know:
- BX Digital received regulatory approval from FINMA to operate a digital asset trading and settlement platform.
- The platform will enable direct asset transfers and trading of tokenized financial instruments.
BX Digital has received approval from Switzerland’s Financial Market Supervisory Authority (FINMA) to operate a digital asset trading platform, marking a significant milestone as the first of its kind in the country. This license allows the Zurich-based company to act as a distributed ledger technology (DLT) trading facility.
By leveraging the Ethereum blockchain, BX Digital will facilitate asset transfers directly without intermediaries. This advancement aims to provide faster and cost-effective transactions while enabling the trading of tokenized financial instruments among various market participants.
CEO Lidia Kurt stated, “Regulated secondary markets have been lacking so far. The license is an important step in setting new standards for capital market efficiency and customer access in the digital asset space.”
Additionally, the system is linked to the Swiss National Bank’s payment network to ensure transactions settle in Swiss Francs, with agreements for delivery versus payment. The firm is collaborating with market makers and has garnered substantial interest from banks and other issuers, according to Lucas Bruggeman.
As part of the Boerse Stuttgart Group, Europe’s sixth-largest exchange, this initiative is viewed as a strategic push to modernize capital markets through blockchain technology. The platform must meet specific regulatory conditions before it begins onboarding clients.
Group CEO Matthias Völkel remarked that BX Digital is just the beginning, with plans for a “digital European issuance and settlement platform” to follow shortly. Earlier this year, the group disclosed that its crypto operations accounted for 25% of its revenue.
