What is a digital crypto bank

FinTech and Digital Assets: What is currently making history in the field of digital assets

The future of assets is digital, and trading in digital assets is anyway. Something that is more beautiful when viewed from an analogue point of view, for example a work of art, may continue to develop its effect as a painting on the wall, but is tokenized and can therefore also be traded digitally. Whole or in part.

Cryptocurrencies, as part of digital assets, do not have to be digitized first, they were never analog, their nature is digital. Often they stay to themselves, sometimes they don't. That is why they need bridges to banks, trading centers and their technologies so that the old and the new world of assets and banking understand each other right away.

FinTechs, financial service providers, banks and stock exchanges that have dedicated themselves to digital assets are very active these days. Three protagonists from the universe of digital assets who are currently making history.

Crypto banks: Sygnum is operational

The Sygnum exponent cannot be accused of being on the brakes. Sygnum is the first digital asset bank to receive a Swiss banking license on August 26, 2019. This date goes down in history not only for Sygnum, the same applies to Switzerland as a location for technology companies, for the Swiss financial center, for a second crypto-FinTech and for the Swiss Financial Market Supervisory Authority FINMA.

The latter also issued the banking license to the crypto bank Seba on the same day. This means that Switzerland has two "first digital asset banks" with a Swiss banking license. This premiere with the issuing of banking licenses to crypto banks and specialized financial service providers for digital assets also caused a stir internationally. A strong signal from FINMA and confirmation of Switzerland's openness to new technologies that strengthen a financial center both nationally and internationally.

Sygnum is currently reporting the onboarding of customers and has thus achieved the operational status. In compliance with all regulations on KYC (Know Your Customer) and AML (Anti Money Laundering), the first customers would be taken on board and the first digital assets, Bitcoin and Ethereum, were successfully brought to the banking platform.

With these first customer transactions, publicly registered on the two most important public blockchains Bitcoin and Ethereum, Sygnum has proven that digital assets are fully bankable and can be managed in a convenient and non-technical way on a single banking platform.

Manuel Krieger, Co-founder and CEO Switzerland of Sygnum, affirmed:

By accepting our first customers, Sygnum connects the world of regulated banking with the future financial system of digital assets

Switzerland: SIX Digital Exchange (SDX) launches prototype for trading and settlement

SIX also got started with SDX, the end-to-end platform for digital assets. SIX reports that the company has launched a prototype of its Digital Exchange and CSD (Central Securities Depository).

According to SIX, the aim of the prototype is to present the future of the financial markets to the community and to receive feedback as well as to show that a decentralized CSD - based on DLT - can be integrated with a central order book exchange model in order to ensure fair market conditions for everyone guarantee.

SIX describes a key advantage of SDX with the following explanations: In contrast to conventional exchanges, SDX enables instant settlement, which eliminates the counterparty risk and the need for security against failure of a CCP - this means that when the buy and sell side is over dispose of the necessary liquid funds and assets to fulfill a transaction, the settlement takes place immediately. This structure is helpful in ensuring liquidity and credibility for the issuance and trading / settlement / custody of new digital assets.

Thomas Zeeb, Chairman SDX and member of the SIX Executive Board, says:

The launch of this prototype is an important milestone in creating a credible digital infrastructure to move our industry forward

The prototype is currently being used, functions and processes are being tested. Feedback from this testing is continuously incorporated into further development. A second phase of the prototype will start in the coming months with the first elements of the post-trade and asset service functionality (digital custody).

According to SIX, the full commissioning of the market-ready SIX Digital Exchange (SDX) is planned for the fourth quarter of 2020.

Germany: Börse Stuttgart launches BSDEX, the first regulated trading platform for digital assets

Similar news comes from Stuttgart: The Digital Exchange of the Stuttgart Stock Exchange (BSDEX) starts trading. BSDEX is the first regulated trading platform for digital assets in Germany, where orders from investors are executed directly against one another according to fixed rules.

BSDEX, according to the Stuttgart Stock Exchange, also combines the possibilities of blockchain technology with the reliability of an established financial market player. Selected users from Germany can now connect directly to the trading platform and initially trade Bitcoin for euros. More private investors and institutional investors will gradually be activated for trading on the BSDEX.

With the BSDEX, the Boerse Stuttgart Group is continuing to build its end-to-end ecosystem for digital assets and wants to drive the digital transformation of the financial markets. With BSDEX and blockchain technology, historically grown structures are to be replaced, says the Stuttgart Stock Exchange, and replaced by new, efficient investment processes.

As examples of the breaking up of these "old" structures, the Stuttgart Stock Exchange cites the elimination of intervening instances and the complex processing of orders and transactions associated with them. BSDEX wants to use this potential and, as a German pioneer, turn it into reality.