SIX, the company that owns and operates the Swiss stock exchange, announced on Friday plans to launch a fully regulated cryptocurrency exchange, which demonstrates a continuing institutional interest in the space despite falling prices.
The new SIX Digital Exchange will be overseen by the Swiss national bank and local regulator FINMA, the company said. Switzerland has been one of the most friendly jurisdictions with the sector in Europe, with regulators offering clear guidance on how they expect cryptocurrency companies to operate.
SIX's decision to launch an exclusive exchange for virtual currencies occurs despite the collapse in the value of these digital assets and the decrease in volumes since the beginning of the year. Bitcoin, the largest cryptocurrency by market value, collapsed from around US $ 20,000 per token earlier this year to just over US $ 6,600 on Thursday.
"This is the beginning of a new era for the infrastructure of capital markets," said Jos Dijsselhof, CEO of SIX in a statement. "For us, it is very clear that much of what is happening in the digital space is here to stay and will define the future of our industry."
Investors and entrepreneurs in space say that institutional investors are preparing the necessary infrastructure to enter the ecosystem, establishing commercial accounts and custody solution behind closed doors.
One described the frantic recent activity as "September preparation", referring to a month typically associated with high volumes of post-summer trading in the investment world.
The new SIX platform, which is supposed to enter operations during the first half of next year, will offer comprehensive commerce, settlement and custody services for digital assets such as Bitcoin and other cryptocurrencies.
Thomas Zeeb, head of securities and exchanges at SIX, said in a statement: "The digital space currently faces a number of key challenges. These include the absence of regulation that guarantees security, stability, transparency and official responsibility, all of which contribute to the lack of confidence. "
Zeeb highlighted the custody of digital assets - who cares for their tokens - as a key issue in space and said that SIX would solve this problem through its role as "a recognized and regulated infrastructure provider, providing all the steps of the chain in an integrated and safe model ".
Several media have previously referred to the problem of custody as a key barrier for venture capitalists and other institutional investors seeking to enter the cryptocurrency sector.
SIX is not the first operator of a traditional stock market that enters the cryptocurrency trade. The TMX Group, which manages the Toronto Stock Exchange, announced its own cryptocurrency brokerage service earlier this year, and the Intercontinental Exchange, owner of the New York Stock Exchange, is also seriously considering getting on the train .