SIX Digital Exchange (SDX) has announced that it has received a regulatory green light from the Swiss Financial Market Regulator, FINMA. SIX will now run a stock exchange and operate a central securities depository for virtual assets in the country.

According to an official statement by the company, the new approval from the regulatory body will allow the exchange to offer regulated trading, settlement and custody services pertaining to Distributed Ledger Technology (DLT) for virtual securities.

Regulation to Drive Growth

The firm also stated that the new authorization would securely allow SIX Digital Exchange to offer reliable and efficient services in a regulated framework. Because of this regulatory approval, the exchange also revealed plans to expand into the global digital financial system.

Commenting on the approval, Thomas Zeeb, the Global Head, Exchanges and Member of the Board at SIX, stated that, “The digitalization of financial markets continues apace, and while the final shape of the market is still evolving, this is an important milestone in providing institutional investors with a safe and robust infrastructure meeting all of the core requirements of a traditional exchange and CSD infrastructure. In this regard, the SDX approval process has proven to be an invaluable experience for SIX and for the industry as a whole.”

SIX has been vigilant in its expansion in Switzerland. Last month, the exchange announced it was partnering with VentureLab to support entrepreneurs in the country. At the beginning of 2021, SIX launched a division dedicated to supporting small and medium enterprises (SMEs).

Making Significant Changes

Switzerland has been a major hub for global financial companies. The country has now taken various measures to ensure a smooth transition of financial markets to the digital era.

Zeeb also added that the regulatory approval would make the digital capital markets mainstream. However, he also assured stakeholders, clients and regulators, that they will be a major part of the future securities and digital assets markets.

SIX also recently released its financial results. The exchange noted a significant increase in operating income between January and June 2021.