Swiss Stock Exchange Eyes European Crypto Trading Venue
The Swiss Crypto Exchange is gearing up to launch a new cryptocurrency trading venue in Europe, aiming to carve out a niche in a market currently dominated by established players like Binance, OKX, and Coinbase. This bold move is part of a broader strategy to attract traditional investors keen on digital assets.
Leveraging Switzerland’s Crypto-Friendly Reputation
SIX Group, the parent company of the Swiss Stock Exchange, is exploring the potential of utilizing its strong reputation and Switzerland’s progressive crypto regulations to draw in large institutional investors. Bjørn Sibbern, global head of exchanges at SIX Group, emphasized that cryptocurrencies are increasingly recognized as a legitimate asset class. He noted that the company is considering a platform that could facilitate both spot crypto trading and derivatives.
The Hesitation of Traditional Finance
Traditional financial institutions have largely avoided venturing into crypto trading due to uncertainties in regulation and concerns over reputational risks. While a few major players like Deutsche Boerse, Nomura, and Standard Chartered have launched their own crypto exchanges, these ventures are usually separate from their main operations. For instance, CBOE Global Markets recently shut its spot crypto venue, citing regulatory ambiguities, and CME Group’s plans for bitcoin trading have stalled.
Institutional Investment Surge
The approval of spot bitcoin and ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission earlier this year has ignited a surge in both retail and institutional investment in cryptocurrencies. This development has heightened expectations that more investors might seek to trade these digital assets directly.
Despite bitcoin’s price dip to around $60,000 from a peak of $72,000 earlier this year, it remains up 40% for the year, showcasing its enduring appeal.
Switzerland: A Crypto-Friendly Hub
Switzerland has emerged as one of Europe’s most crypto-friendly nations, thanks to its comprehensive laws on asset trading, custody, and token classification. These regulations set Switzerland apart from many other countries, which have yet to adopt similar frameworks.
Sibbern hinted at expanding SIX’s European operations, suggesting that a new crypto trading venue could cater exclusively to institutional investors, such as asset managers. The company is also contemplating replicating its successful AsiaNext venture—a crypto derivatives platform in Singapore, developed in partnership with Japan’s SBI Group—in Europe.
Potential for Broader Expansion
In addition to its digital exchange, where nine digital bonds have been listed since 2018, SIX Group is contemplating extending its offerings to include direct stock trading. This move would mark a significant expansion for SIX, which has recently hosted some of the biggest IPOs in Europe, including Spanish beauty giant Puig and dermatology group Galderma.