SIX May Launch its Own Token, Has Spent Over $20 million on SDX

Thomas Zeeb, head of securities and exchanges at SIX Group, said on Monday that the exchange operator is considering launching its own token.

Speaking to Finews, Zeeb said that SIX is likely to launch its digital assets Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term at the start of next year. The exchange operator also plans on launching a pilot version of the service this summer.

Using Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology, SIX Digital Exchange (SDX) will provide access to tokenized securities and act as a platform for initial digital offerings (IDOs) - a process that looks like it will resemble an initial public offering.

And alongside those services, it’s possible we’ll see a SIX token.

“We’ve got a number of organizations which want to launch tokenized structured products, real estate funds, and so on,” said Zeeb. “But it could also be our own IDO. Whether we begin with warrants, structured products, funds is up to our clients to decide.”

Replacing old infrastructure

Getting those tokens off the ground, if they are indeed launched, will be a lengthy process. But it is one that SIX appears to be happy to invest in.

Currently, the SDX project has 70 people working on it, and Zeeb noted that this is likely to rise to 100 by the end of the year. The exchange executive also said that SIX Group spent tens of millions of dollars on the SDX last year and will do the same in 2019.

“We’re investing a significant double-digit million amount this and last year,” said SIX’s head of securities and exchanges. “The final price tag depends on numerous factors, including the regulatory requirements, new client use cases, how long we have to sustain SDX half-ready to go in the box, and when profitability kicks in.”

Interestingly, Zeeb also discussed the potential move from traditional financial infrastructure to the blockchain-based SDX. He said that the project is likely to last “at least ten years” with a possible discussion around “decommissioning….traditional infrastructure” in five to seven years.