With the complexity of a unifying compliant infrastructure that supports digital assets, Deutsche Borse, Swisscom and Sygnum have come together to make the process hustle free. The three firms will see create an ecosystem that is compliant for digital assets.
Deutsche Borse Group is a global infrastructure provider which will come in handy in the partnership. Swisscom, on the other hand, is a Swiss state-owned ICT and Telecoms firm that will be instrumental in the provision of ICT and Telecommunications support. Sygnum is Fintech firm based in Singapore which completes the deal.
While making the announcement in a joint press release on 11th March, the three firms are working on a financial market ecosystem that will be compliant to the digital asset requirements. Simply put, the initiative will see the birth of new Distributed Ledger Technology platform that supports the modern and future tokenized economy adding that; it “has the potential to reshape global financial markets.”
Digital Asset Solutions in the Horizon
If all goes according to plan, the new platform will be a groundbreaking project that is compliant with the issuance and custodial solutions of digital assets. What’s more; the ecosystem will prove market players with the much-needed liquidity as well as easy to access banking services.
Already, Sygnum has been issued with a Swiss banking and securities dealer license through FINMA. This means they are set to provide ”comprehensive banking services which include custody, deposits, credit & lending, capital issuance via tokenization, brokerage and asset management” for the Project.
Swiss come role in the partnership is to provide a DLT infrastructure that is scalable, a feature that has been elusive in the crypto verse. The infrastructure will meet all security parameters as required in the financial sector.
High Profile Partnerships and Realignments
The collaboration will also see Deutsche Borse become a Custodigit AG shareholder. Custodigit is a firm created by Sygnum and Swisscom and its role is to provide digital asset custodial solutions for financial institutions that are regulated.
Newconomy.media has also learned that Sygnum and Deutsche Borse are set to invest in a DLT ecosystem; Daura AG that “supports the issuance, transfer and registration of Swiss SME-shares, enabling non-listed companies to access the capital markets.”
The two firms have also set eyes in the Swiss market which appears to be ripe for a compliant system for digital asset open listing and trading. This way, the partnership will tap into the local potential for a digital asset ecosystem that is scalable.
Deutsche Borse and Sygnum are further developing a conceptual framework for the creation of a compliant open listing and trading venue for digital assets in the Swiss market, which the partners deem to be an important element in developing a scalable digital assets ecosystem.
Rollout Timelines Set
Once the merger control clearance hurdle is cleared the Deutsche Borse, Swisscom and Sygnum partnership will see its first services hit the market before close of 2019. Already, Deutsche has completed DLT tests with Commerzbank, a Germans financial institution and is also working on crypto securities lending platform with a liquidity management form HQLAx based in Luxemburg.
The partnership comes at a time when the digital asset market is at crossroads and compliance requirements are slowing down adoption and integration with existing financial institutions. The collaboration will go a long way in adding more liquidity in the market and increasing investor confidence for increased digital asset uptake.