Swiss Stock Exchange, popularly known as SIX, is considering the introduction of a new digital cryptocurrency trading platform in Europe. According to a report carried out by Financial Times on 18th September, if they launch, they will enter into the market dominated by big competitors like Binance and Coinbase.
Bjørn Sibbern, the head of exchanges at SIX Group, said they are still studying the concept. They want to provide a platform where people can trade cryptocurrencies. This platform would not only be for normal trading but also for derivatives. Derivatives are financial products that depend on the value of something else, such as Bitcoin or Ethereum.
The new platform of Swiss Stock Exchange will not be for all. It will only be designated for big investors; otherwise, these are known as institutional investors. They include people such as asset managers and huge financial firms. They are the major targets because these kinds of investors deal in large volumes of money.
Swiss Stock Exchange certainly expects its strong reputation to help attract these large investors. They also would like to utilize Switzerland’s clear and friendly crypto regulations to their advantage. Switzerland is considered one of the most advanced countries in terms of crypto regulation, which makes it much easier for companies like SIX to work with cryptocurrency.
In that direction, catering to institutional investors is how the Swiss Stock Exchange believes it can differentiate its new platform. Major investors that fall into this category are also those the crypto market needs for further growth. Should the firm at SIX succeed in its onboarding, it could very well turn into a leading player in the European crypto trading space.
A Growing Trend in Finance
Other traditional financial companies are also entering the crypto world. For example, Standard Chartered and DBS from Singapore have recently entered the fray by beginning to offer crypto trading. That is to say, more and more traditional companies have come to respect cryptocurrency as a serious and vital part of the financial world.
One reason for this interest is that the United States has started to approve new financial products connected with cryptocurrencies. Such products are called exchange-traded funds, or ETFs, and let people invest in Bitcoin and Ethereum without the need to actually buy them. It has made cryptocurrency more appealing to traditional investors.
Swiss Stock Exchange: Competing with the Big Players
The crypto market may see a great shake-up if SIX goes ahead with its plan. As of now, Binance, Coinbase, and ByBit are those dominating the market; they handle most of the trading activities. For instance, trading on those platforms increased by 5.38% this August alone, per a company called CCData. The total trading volume during that month reached $5.22 trillion.
These are huge platforms, but their focus is mostly on retail investors or in other words, smaller traders. If SIX launches its platform, it will go after the bigger, institutional investors. That would shift the balance of power in the market.
Final Notes
The crypto market is growing fast, and more traditional companies are starting to take it seriously. Swiss Stock Exchange’s new platform could mark a significant step forward for institutional investors in Europe by offering them a safe and regulated place to trade crypto; this could attract big players that have so far stayed out of the market.
If the Swiss Stock Exchange is successful, that might create a spillover in the crypto world, with even more traditional financial institutions getting involved. That might make cryptocurrency an ever more stable and trusted constituent part of the overall global financial system.
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