Swiss stock exchange SIX has partnered with the Swiss National Bank (SNB) to work on a proof of concept on central bank digital currencies and on how these can be used in the settlement of tokenized assets between financial market participants.
The study is, according to an announcement, part of the innovation hub for financial technology the Bank for International Settlements (BIS) announced it was setting up earlier this year with the SNB.
As part of the proof of concept, SIX is set to provide its platform to explore the “technical possibilities for integrating digital central bank money into DLT platforms.” The exchange added that the buying and selling of blockchain-based assets has the potential to reduce counterparty risk.
Moreover, the announcement notes the economic opportunities that could be created from the availability of central bank money are “significant,” as it could also “enable innovative forms of value creation in finance.”
Thomas Zeed, SIX’s Head of Securities & Exchanges, was quoted as saying:
Our proof of concept on the subject of digital central bank money for financial market participants on DLT platforms will not only provide technological insights, but will also send an important signal to all market participants to take steps to explore DLT technology and digital assets.
Jos Dijsselhof, SIX’s CEO, said the exchange is pleased to contribute to the initiative and explore the “technological possibilities with which the SNB could support token-based financial ecosystems in the future.”