Swiss SIX Stock Exchange Considers Launching Crypto Exchange in Europe

The Swiss stock exchange operator, SIX Group, is reportedly considering launching a new crypto trading platform in Europe.

SIX Group is considering using its reputation and the country's advanced crypto laws to muscle in on a market dominated by firms such as Binance, OKX and Coinbase. https://t.co/exwdRZLWHi pic.twitter.com/7QtYDyEz5J

— Financial Times (@FT) September 18, 2024

According to the Financial Times, the company seeks to compete with established players like Binance, OKX, and Coinbase by leveraging its reputation and Switzerland’s favorable crypto regulatory environment.

Swiss SIX Stock Exchange Challenging Major Crypto Exchanges

Bjørn Sibbern, the global head of exchanges at SIX Group, stated that the company is evaluating the possibility of creating a platform that could support both spot and derivative crypto trading.

Although the specific timeline is unknown, Sibbern emphasized the importance of cryptocurrency, which he argued is becoming widely “recognized asset class,” prompting the company to explore the sector.

The platform, if launched, would be a significant step for SIX Group in the crypto arena, directly challenging the dominance of top-tier exchanges like Binance, Coinbase, and ByBit.

Recent data from blockchain analytics firm CCData shows that trading volumes on centralized exchanges have increased, with spot and derivatives activity growing 5.38% in August alone, reaching $5.22 trillion.

The top exchanges like Binance currently control around 70% of this spot volume, making the entrance of traditional financial institutions a potential disruptor in the market.

SIX Group’s planned venue would capitalize on the growing interest from global banks and institutions in cryptocurrency.

JUST IN: 🇦🇪 Standard Chartered bank just launched a #Bitcoin and crypto custody service in UAE pic.twitter.com/TEwV5Ko8pZ

— Bitcoin Archive (@BTC_Archive) September 10, 2024

While many traditional financial firms have hesitated to enter the crypto market due to regulatory uncertainty, institutions like Deutsche Börse, Nomura, and Standard Chartered have already launched their own crypto trading platforms.

SIX to Target Institutional Investors, Leveraging Switzerland’s Crypto-Friendly Environment

SIX Group hopes to differentiate itself by offering institutional clients a secure and regulated environment for trading digital assets.

Switzerland has established itself as one of Europe’s most crypto-friendly nations, with clear and strict regulations governing crypto trading and custody.

This regulatory clarity offers legal certainty for businesses and investors alike, providing SIX with a strong foundation for building its new venture.

Similarly, the country’s regulations ensure that businesses have clear guidelines for operating in the digital asset space, including stringent rules for stablecoins, which have become a key component of the crypto ecosystem.

In late July, the Swiss Financial Market Supervisory Authority (FINMA) issued guidance on stablecoins, requiring issuers to verify the identities of token holders and beneficial owners to mitigate associated risks.

SIX Group’s experience in the crypto space through its subsidiary AsiaNext, a Singapore-based crypto derivatives company, may also provide valuable insights for this European venture.

AsiaNext could serve as a model for the company’s European platform, offering a proven structure for trading and managing crypto assets in a regulated environment.