Swiss Inventory Alternate SIX Launches Digital Asset Service for Cryptocurrency and Traditional Assets

The Swiss stock exchange operator SIX has unveiled its Digital Collateral Service, enabling financial institutions to utilize cryptocurrency assets alongside traditional securities as collateral.

SIX manages one of Europe’s largest triparty brokers, which offers collateral management solutions for financial institutions, according to an official press release.

This new service eliminates the need for separate platforms to handle crypto collateral, simplifying operations and enhancing risk management.

The system also provides additional security in the event of defaults.

Crypto Collateral in SIX’s New Service Limited to Crypto-Related Transactions

It is important to highlight that crypto collateral will mainly be utilized for crypto-related transactions, such as those conducted by ETP issuers, institutional traders, and cryptocurrency exchanges.

While the service facilitates the combination of bonds and Bitcoin as collateral for a single position, it cannot be employed for repo transactions or as collateral for securities lending on SIX exchanges.

Instead, it is intended to offer collateral solutions for over-the-counter (OTC) and bilateral crypto trades.

SIX also operates the SIX Digital Exchange (SDX), which provides crypto custody services and a platform for trading digital securities.

The Digital Collateral Service utilizes SDX’s custody solutions, ensuring a smooth integration of digital and traditional financial assets.

“The role of cryptocurrencies in collateral management will become increasingly significant,” stated David Newns, Head of SDX.

“Our new and fully integrated solution empowers product issuers, traders, brokers, and market makers to optimize their collateral usage, whether it involves crypto or traditional securities, with integrated risk management safeguards. This enables financial institutions to adopt crypto collateral on a larger scale.”

We’re pleased to announce that @sixgroup launched the new Digital Collateral Service today, allowing financial institutions to post selected cryptocurrency assets as collateral alongside traditional collateral. #SIX has developed this service by combining and leveraging…

— SIX Digital Exchange (@SDX_global) February 12, 2025

Initially, the service will support Bitcoin, Ethereum, Avalanche, Cardano, Solana, Ripple, and the USDC stablecoin, with intentions to expand the asset selection based on user demand.

SIX has consistently been at the forefront of digital asset innovation.

It was the first to establish a secondary marketplace for digital securities and to integrate a digital securities depository with a conventional central securities depository (CSD).

Additionally, SDX was the first platform to host a wholesale CBDC (pilot) for settlement, reinforcing its position as a leader in blockchain-based financial solutions.

Tokenization Market Could Reach $16T by 2030

McKinsey & Company recently reported that tokenized financial assets have experienced a “cold start” but are still projected to grow to a $2 trillion market by 2030.

Meanwhile, a report by the Global Financial Markets Association (GFMA) and Boston Consulting Group estimates the global value of tokenized illiquid assets will reach $16 trillion by 2030.

More conservative estimates from Citigroup suggest that $4 trillion to $5 trillion worth of tokenized digital securities could be created by 2030.

Recognizing this potential, major companies are making significant moves in the tokenization sector.

Goldman Sachs, for instance, plans to introduce three new tokenization products later this year, driven by increasing consumer interest.

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