SIX, a principal Swiss stock exchange asks the country’s central bank to start issuing a stablecoin that will settle payments on its new digital securities trading platform, as reported by local media SwissInfo on June 26
During the Crypto Valley Association conference this week, SIX reportedly announced that users of its upcoming SDX platform could swap fiat currency for a new stablecoin. The exchange further explained that “SDX member banks will be able to settle their trades and other obligations against tokenised CHF within SDX once we are up and running.”
The firm adds that tokens can be coined on-demand:
“SDX would accept CHF payments from member banks in central bank money and issue equivalent tokenised CHF in SDX. The value of tokenised CHF would be pegged 1:1 with CHF at all times. We most definitely favour a central bank issued stablecoin.”
The publishing claims that Switzerland’s central bank had confirmed that it is in talks with SIX “about different options on how to settle the cash side” of trades, but no final decision has been made as of yet. Notably, if the Swiss National Bank agrees to SIX’s suggestion, it would mark as a great shift from its current cautious policy on digital currencies.
The news about SIX working on a stablecoin pegged with Swiss Franc was initially announced in late May. Though not many details such as whether the Swiss franc-backed coins would be for private use within SDX (like JPMorgan Chase’s feted JPM Coin) or will it be added to the cryptocurrency ecosystem, were revealed at the time.
As for within SDX, a fiat-backed token could purportedly be used to perform tasks such as atomic swaps of tokenized securities and other assets on the blockchain.
Image source – Six Twitter
Cryptocurrency Market Update