Deutsche Boerse, Swisscom And Sygnum Partner To Create Trusted Digital Asset Ecosystem
Deutsche Boerse, operator of the Frankfurt Stock Exchange, Swisscom, a state-owned telecommunications provider in Switzerland, and Singapore-based FinTech firm Sygnum have partnered to build a trusted digital asset ecosystem.
The three companies will work together to jointly build out and grow a trusted and regulatory compliant financial market infrastructure for digital assets. The distributed ledger technology (DLT)-based ecosystem will reportedly enable investors to tap into these new asset classes and accommodate to future client needs.
“The core elements of the solution will include issuance, custody, access to liquidity, and banking services – all leveraging DLT in a regulatory compliant environment,” the companies said. “The strategic partners will jointly grow and enhance these foundational elements of the digital asset ecosystem in alignment with the requirements of market participants.”
As part of the partnership, Deutsche Boerse invested in Custodigit AG, a joint venture by Swisscom and Sygnum that provides a technical solution for the custody of digital assets for regulated financial services institutions. Deutsche Boerse and Sygnum will also become shareholders of daura AG, which developed a platform that uses DLT to issue, securely transfer and register Swiss SME-shares, enabling non-listed companies to access the capital markets.
Jens Hachmeister, Managing Director, DLT, Crypto Assets and New Market Structure, Deutsche Boerse, said that this cooperation, the complementary infrastructure and expertise of the parties involved, is a great opportunity for creating a comprehensive and market leading ecosystem for digital assets.
“With Swisscom and Sygnum we have two highly recognized partners on board and we are looking forward to bundle forces,” said Hachmeister. “Continuing our investments in new technologies and driving the development around DLT forward is a key focus of Deutsche Börse Group. Switzerland, known to be a nucleus for financial markets innovation, is the ideal starting point for Deutsche Börse to drive this evolution forward.”
According to the press release, Deutsche Boerse and Sygnum are currently conceptualizing the establishment of a further building block of the ecosystem – a listing and trading venue for digital assets in the Swiss market. As soon as Sygnum obtains a Swiss banking and securities dealer license from the Swiss regulator FINMA, it will provide comprehensive banking services such as custody, deposits, credit & lending, capital issuance via tokenization, brokerage and asset management within the digital asset ecosystem.
Mathias Imbach, Founding Partner & CEO Singapore of Sygnum, said that the establishment of a trusted digital asset ecosystem is another strong example of Switzerland and Singapore’s continued leading role in global financial markets innovation.
“Sygnum’s banking expertise and ability to innovate rapidly using DLT, combined with Deutsche Boerse and Swisscom’s experience in building and operating scalable financial services infrastructure, is a winning formula,” said Imbach. “We are thrilled to embark on this journey with two such strong partners to unlock the potential of the digital asset universe for institutional market participants – and ultimately spearhead digital assets’ transition from mainstream awareness to mainstream adoption.”
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