Switzerland’s premier stock exchange, SIX (worth over $1.5 trillion), is preparing to launch digital securities on its platform. It may even issue its own security token in 2021.
Thomas Zeeb, head of securities and exchange for SIX, gave a wide-ranging Q&A interview with finews.com. He says SIX is seeing demand from all types of clients to launch “tokenized structured products, real estate funds, and so on.”
While SIX may be a couple of years away from launching its own token, the movement of tokenized assets is clearly underway…
Zeeb even went so far as to say, “Maybe the token will eventually replace the share one day.”
This should sound familiar to longtime readers….
In January, Robert Greifield, former SIX chairman and former Nasdaq CEO, was quoted as saying, “100% of the stocks and bonds trading on Wall Street today could be tokenized, and in five years, 100% of the stocks and bonds on Wall Street will be tokenized.”
SIX is another example of the growing global appetite for security tokens. We’ve recently seen the launch of the tZERO platform here in the U.S. and the DX.Exchange out of Estonia, which allows investors to buy tokenized shares of stocks like Apple, Facebook, Amazon, and other household names using cryptocurrencies.
When asked whether SIX would allow cryptocurrency trading, Zeeb said no, since cryptos aren’t compliant with regular security checks, such as “know your customer” (KYC) and “anti-money laundering” (AML).
Remember, unlike cryptocurrencies, security tokens (or digital securities) represent ownership, much like a stock. Token holders have an equity stake in the asset and are entitled to dividends if issued by the company.
The majority of cryptos, on the other hand, are utility coins, meaning they’re used for a function—like gambling on blockchain platforms like FunFair. (It may also help to think of Chuck E. Cheese or Dave & Buster’s tokens, which are great if you’re playing games at these venues. But outside of them, they’re worthless.)
The bottom line—financial institutions and exchanges from all over the world are preparing for all types of assets to be tokenized. The new opportunities for investors in real estate, fine art, collectables, stocks, bonds, etc. will be mind boggling…
Keep reading Token Tracker for what you need to know about this unfolding sector. It’s going to be one of the biggest investment opportunities of our lifetime.
Research Analyst, Curzio Research