BX Digital secures $1M FINMA approval for blockchain trading

BX Digital, a subsidiary of the Boerse Stuttgart Group, has received regulatory approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate a blockchain-based digital asset trading and settlement platform.

This milestone marks the first time a distributed ledger technology (DLT) trading facility has been licensed in Switzerland, positioning the country as a leader in integrating blockchain into financial markets.

The platform, built on the Ethereum (CRYPTO:ETH) blockchain, enables direct asset transfers without intermediaries like central securities depositories, facilitating faster and lower-cost transactions for tokenised financial instruments such as stocks, bonds, and funds.

This setup supports trading among banks and securities firms, enhancing capital market efficiency and customer access in the digital asset space.

A key feature of the system is its connection to the Swiss National Bank's payment network, ensuring transactions settle in Swiss francs with delivery versus payment agreements.

BX Digital is working with market makers and has received strong interest from banks and issuers, according to Lucas Bruggeman, CEO of BX Swiss.

"Regulated secondary markets have been lacking so far," noted  Lidia Kurt, CEO of BX Digital, and this license is an important step in setting new standards for capital market efficiency.

The platform must fulfill specific regulatory conditions before accepting clients and is part of a broader push by Boerse Stuttgart Group to modernise capital markets using blockchain technology.

Matthias Völkel, CEO of Boerse Stuttgart Group, emphasised that BX Digital is just the beginning, with plans for a digital European issuance and settlement platform to follow soon.

This development underscores Switzerland's commitment to balancing technological innovation with financial stability and security, as outlined in its DLT Act.