Switzerland’s principal stock exchange— SIX Swiss Exchange— is currently developing a stablecoin pegged to the Swiss franc. The new stablecoin will be used for transactions in the upcoming SIX Digital Exchange.
SIX Stock Exchange’s Developing Swiss Franc-Pegged Stablecoin Explained
A SIX Swiss Exchange spokesman recently told CoinDesk, “we are currently working on a CHF stablecoin — so Swiss franc.”
The stablecoin will be used to facilitate transactions on the developing SIX Digital Exchange (SDX). SDX is set be an end-to-end infrastructure for digital asset trading, settlement, and custody.
However, it is not known at this time whether the stablecoin will be restricted to internal SDX transactions, or will be available for public use.
The announcement comes as the SIX exchange has been very active in the tokenization of securities.
In early May 2019, SIX announced an upcoming Initial Digital Offering (IDO) service, which is said to “fulfill similar standards as an IPO”.
SIX top executive Thomas Zeeb also revealed plans to tokenize the exchange’s existing securities by 2021.
“Ultimately we want to be able to tokenize existing securities – equities, fixed income, funds. Maybe the token will eventually replace the share one day.”
Zeeb also noted that the first assets to be tokenized on SDX will be existing securities which are already traded on the SIX exchange.
The Growing Interest in Stablecoins Explained
The first stablecoin was established in 2014. But since then, more than 50 have arrived in the digital asset space.
Many believe stablecoins will unleash widespread blockchain adoption as they reduce the highly criticized volatility seen in many cryptocurrencies.
Some even predict a future of government issued stablecoins.
The central bank of France recently acknowledged they are observing tokenized securities and stablecoins “with great interest”.
According to a recent article by Futurism,
“If implemented on a widespread scale, stablecoins could have the ability to become an essential part of the so-called ‘Internet of Value,’ a global financial network in which value can be exchanged just as quickly as information flows on the internet.”
What do you think of the SIX exchange developing a Swiss franc-pegged stablecoin? Will stablecoins lead to an increase rate of adoption for blockchain technology? Let us know what you think in the comments section below.
Image courtesy of SIX.