In its upcoming blockchain-powered trading platform, Swiss stock exchange SIX Swiss Exchange will use R3’s Corda Enterprise technology.
According to a March 7 Coindesk report, SIX has chosen R3’s technology after evaluating a number of distributed ledger technology (DLT) stacks.
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Sven Roth, the chief digital officer at the Zurich-based exchange, told the publication that the opensource platform’s capability to operate in a highly regulated space has put it ahead of its competitions. He also stressed that the Corda can be used effectively in a wide range of areas including insurance.
“This was very important to us because when we assessed different vendors, some of them were very focused on niche offerings and limited in their scope to very specific areas, such as post-trade for instance, and we didn’t want to be limited to just that area of expertise,” Roth told Coindesk. “We assessed a lot of vendors and technology stacks – all the ones you can imagine.”
The blockchain-enabled platform is scheduled to launch in the second half of 2019 and in the initial phase will list banking assets like equities, bonds, funds, and structured products.
The developers of the upcoming exchange will also mold the platform to handle security token offerings (STOs), which are gaining momentum in the blockchain industry for securing funds.
“As you can imagine we need some product to define in the future what we would call security token offering or initial digital offering – so what today is an IPO,” Roth added.
Moreover, the Swiss exchange is betting big on Corda as it has subscribed to the paid-for version of the platform instead of using the opensource one.
Adopting the New Asset Class
SIX has jumped on the cryptocurrency bandwagon last year by introducing an exchange-traded crypto basket consisting of five top digital currencies. The product was a massive success as, on the first day of listing, the product generated $400,000 worth of trades, according to an Amun report.
This boosted the exchange to introduce two more similar exchange-traded products – one backed by Bitcoin and the other by Ethereum.