just now
December 13, 2023 - SIX Digital Exchange (SDX), a regulated securities exchange powered by blockchain technology, has taken a significant step forward in revolutionising the private securities market by successfully converting ledger-based private shares of Aktionariat AG into bankable securities on its Central Securities Depository (CSD).
SDX says that this transaction demonstrates that shares issued on the Ethereum blockchain can be transformed from ledger-based securities into intermediated, bankable securities on a regulated platform. This will facilitate custody and increase transferability of digital securities available to investors in private companies.
In collaboration with Berner Kantonalbank (BEKB) serving as the issuer agent and custodian, SDX seamlessly integrated Aktionariat's private shares issued on the Ethereum blockchain into its regulated CSD infrastructure. This groundbreaking milestone demonstrates the viability of tokenising private equity stakes and transforming them into tradable instruments within the traditional financial system.
Nicola Plain, CEO of Aktionariat commented, "With this transaction, the involved players from the traditional finance world are proving that they are open to the integration of assets that were originally issued on an open, permissionless blockchain. An important step towards building a bridge between decentralized finance and traditional finance."
Alexander Kech, Head Digital Securities at SDX, added, “The success of this initiative is expected to pave the way for future collaborations with BEKB, Aktionariat, and their respective customer bases. It also aligns with SDX's strategy to engage with private market ecosystem partners and the Swiss SME investor community.”
With SDX's CSD providing secure bank custody, investors can benefit from the convenience of seamlessly integrating their private equity investments alongside traditional assets such as listed shares, ETFs, and structured products. This seamless integration eliminates the need for shareholders to manage private keys, streamlining the investment process and enhancing overall security.
Going forward, BEKB, Aktionariat, and SDX will continue their collaboration to refine the solution and explore potential market adoption pathways. This joint endeavour aligns with SDX's strategic focus on fostering innovation and empowering the Swiss private market ecosystem, particularly for small and medium-sized enterprises (SMEs).
