Digital Collateral Service Launched by SIX to Enhance Crypto Asset Management

The Swiss stock exchange group SIX has introduced a Digital Collateral Service, allowing financial institutions to use crypto assets alongside traditional securities as collateral. This service aims to streamline collateral management by reducing operational complexity and enhancing risk management.

SIX, one of Europe’s largest triparty agents, will initially support Bitcoin, Ethereum, Avalanche, Cardano, Solana, Ripple, and USDC as collateral, with plans to expand based on client demand.

The Digital Collateral Service is designed to facilitate the use of crypto assets as collateral for crypto-related transactions, such as those involving exchange-traded product issuers, institutional traders, and crypto exchanges. However, it cannot be used for repo transactions or securities lending within SIX’s infrastructure.

Key Features of the Digital Collateral Service

  • Combines digital and traditional assets through the custody solutions of the SIX Digital Exchange
  • Enhances risk management and reduces operational complexity
  • Initially supports seven crypto assets with plans for expansion

SIX has been at the forefront of digital asset innovation, becoming the first to integrate a digital securities depository with a conventional central securities depository. Its continued development of blockchain-based financial solutions, including hosting a wholesale central bank digital currency pilot, reinforces its position as a leader in digital finance.

“We are delighted to announce that SIX launched the new Digital Collateral Service today, permitting financial institutions to post selected cryptocurrency assets as collateral alongside traditional collateral.”

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