Swiss stock exchange SIX is planning to issue its own tokens and launch a so-called initial digital offering (IDO) service, SIX’s top executive Thomas Zeeb told finews.com. The exchange is aiming to start a pilot in late summer, and it’s planning to launch the first services, including the one for IDOs, in early 2020.
“An IDO needs to fulfill similar standards as an IPO,” said Zeeb. “You can’t just do an ICO whitepaper, hype it up a little bit, and then launch. As an infrastructure, we want to ensure we set the standard and that existing rules around asset safety and investor protection are maintained.”
The type of tokens SIX might launch is still undecided; according to Zeeb, various organisations want to issue different tokens, such as tokenized structured products or real estate funds. If successful, SIX Digital Exchange which is currently in the works is hoping to tokenise all existing securities. Zeeb believes “Maybe the token will eventually replace the share one day.”
Tokenising securities is expected to happen by 2021, depending on the regulations that will be in place.
However, SDX is not planning to trade cryptocurrencies since they are designed in a way to make it impossible to tell “who’s behind the trades and where the coins are coming from,” according to Zeeb.
“If the market for today’s cryptocurrencies can be legitimized from a know-your-customer and know-your-coin point of view, we may well create the necessary connectivity between our respective infrastructures,” Zeeb added.