19 September 2024
According to the Financial Times, the Swiss stock exchange SIX, the third largest in Europe, is exploring the possibility of launching a new Bitcoin and crypto exchange in the country, aiming to position itself to compete with exchanges like Binance, OKX and Coinbase.
SIX Group Plans New Bitcoin Trading Venue
Bjørn Sibbern, Global Head of Exchanges at SIX Group, highlighted the potential for creating a platform to facilitate trading in spot cryptocurrencies and derivatives, noting that crypto has become a globally recognized asset class.
According to the report, the exchange aims to leverage its reputation and Switzerland’s progressive regulatory framework for digital assets to attract large institutional investors.
Despite the growing interest, traditional financial firms have hesitated to establish crypto trading platforms due to concerns about regulatory clarity and reputational risks. While some major firms, including Deutsche Boerse, Nomura, and Standard Chartered, have launched their crypto exchanges, others remain cautious.
For example, CBOE Global Markets recently closed its spot crypto venue, citing insufficient regulatory guidance. Similarly, CME Group had considered entering the Bitcoin trading space earlier this year but has since indicated that it has no immediate plans.
Switzerland’s Crypto-Friendly Environment
According to Sibbern, the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission has sparked renewed interest from retail and institutional investors.
Although the Bitcoin price has seen considerable volatility over the past two months – from a high of around $72,000 earlier this year to a current trading price of $59,800 – it is still up 40% year-to-date, underscoring the asset’s appeal to investors and confidence in its continued appreciation despite medium-term challenges.
The report further notes that Switzerland has emerged as one of Europe’s most “crypto-friendly jurisdictions,” thanks to its comprehensive laws governing the trading and custody of digital assets.
Sibbern noted that SIX is actively exploring ways to expand its offerings in Europe, with cryptocurrency trading being a significant consideration. However, he emphasized that any new trading venue would cater exclusively to institutional investors, such as asset managers, rather than retail traders. Sibbern further told the news outlet:
We are looking at other ways for us to expand in Europe and as a part of that, we are also looking at [whether] crypto should be a part of it. We see the trend that more and more global banks and institutions are looking at crypto
SIX also operates a crypto derivatives platform named AsiaNext in a joint venture with Japan’s SBI Group. Sibbern remarked that they are evaluating whether to replicate this model in Europe.
The Swiss exchange, owned by 120 banks, already runs a digital exchange that has listed several digital bonds since 2018, indicating its commitment to integrating digital assets into its operations.
Featured image from DALL-E, chart from TradingView.com