The Swiss stock exchange SIX is exploring the possibility of establishing a cryptocurrency trading platform in Europe, aiming to compete with established digital asset firms like Binance, OKX and Coinbase.
What Happened: The move reflects growing institutional interest in digital assets, particularly as traditional investors seek a reputable and regulated environment to trade cryptocurrencies.
Bjørn Sibbern, the global head of exchanges at SIX Group, highlighted the increasing acceptance of crypto as a legitimate asset class.
"Crypto has become more and more a recognized asset class," Sibbern told the Financial Times.
He explained that SIX is considering building a platform to facilitate both spot and derivatives crypto trading.
This initiative could capitalize on Switzerland's robust regulatory framework for digital assets, positioning it as a key player in the European market.
While some traditional finance institutions have been cautious about entering the crypto space due to regulatory uncertainties and concerns about reputational risks, a few prominent firms have ventured into the sector.
For instance, Deutsche Boerse, Nomura and Standard Chartered have launched their own crypto exchanges, often separate from their core operations.
However, not all efforts have succeeded.
CBOE Global Markets CBOE closed its spot crypto exchange earlier this year, citing unclear regulations, and CME Group explored Bitcoin trading but has since shelved those plans.
The approval of spot Bitcoin BTC/USD and Ethereum ETH/USD exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission earlier this year has sparked increased interest from both retail and institutional investors.
This influx has raised expectations that more investors will seek to trade cryptocurrencies directly.
Although Bitcoin's price has dipped from its all-time high of $72,000 to around $60,000, it remains up by 40% this year, showing resilience in the market.
Switzerland has emerged as one of Europe's most crypto-friendly nations, boasting comprehensive laws around the trading and custody of digital assets.
These regulations provide clarity on the classification of various types of tokens, something many other countries have yet to implement.
Also Read: Bitcoin Surges 5.3% Ahead Of Fed’s Key Rate Decision: This Cut Could ‘Cause Uncertainty’
This regulatory advantage could make Switzerland an attractive hub for institutional crypto trading.
Sibbern noted that SIX is evaluating multiple avenues for growth in Europe, with crypto being a potential addition.
"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," he said, emphasizing that the platform would target institutional investors, such as asset managers. He further added, "We see the trend that more and more global banks and institutions are looking at crypto."
SIX already operates a crypto derivatives platform, AsiaNext, based in Singapore in partnership with Japan's SBI Group.
Sibbern mentioned that the company is contemplating a similar initiative in Europe, although the project is still under evaluation.
"We are looking at should we do something similar in Europe," Sibbern said, acknowledging that the company might ultimately decide not to proceed with the venture.
In addition to exploring crypto trading, SIX operates a separate digital exchange, which has seen the listing of nine digital bonds since 2018, with issuers including UBS and the city of Lugano.
Sibbern indicated that this digital exchange could potentially be expanded to encompass cryptocurrency trading as well, marking a significant evolution for the Swiss group.
This exploration into cryptocurrency trading comes at a time when SIX's traditional exchanges have experienced notable successes, hosting two of Europe's largest IPOs this year — Spanish beauty company Puig and dermatology firm Galderma.
As the digital asset space continues to evolve, industry stakeholders are gearing up for Benzinga's Future of Digital Assets event on Nov. 19, where experts and institutional players will gather to discuss the latest trends and developments in the crypto landscape.
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