Swiss stock exchange firm Six Group’s cryptocurrency trading platform Swiss Digital Exchange has announced that it will be launching an initial digital offering (IDO).
The firm has already organized a group of financial institutions across the globe that will support the IDO. The IDO, which will take place next year, will be similar to a traditional IPO but the shares will be in the form of digital tokens offered on the SDX platform.
Investors to Help Build SDX Business
Thomas Kindler, the CEO of SDX, indicated that the consortium of institutions includes investors from the banking sector and market infrastructure, as well as developers. He said the IDO aims to raise capital as well as legitimizing the technology. He added that the focus is to get investors who can help the business and assist in validating the technology off the ground.
The CEO did not disclose who the members of the consortium are or how much SDX wants to generate. He only confirmed that SDX will be the majority equity holder. Already, five big investors and close to 10 small investors have shown interest in taking part in the IDO.
SDX to Introduce Own Security Token
The company plans to introduce its SDX security token deviating from the original plan to tokenize conventional banking assets and real estate assets. Issuance of the SDX token will be on a blockchain platform built through R3’s Corda Enterprise. Regarding the security tokens, the CEO said that they are considering having a two-phased approach. The first will involve the international group of investors, and the other involves the firm’s issuance.
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The firm announced last week the launch of the prototype version of its digital assets exchange and central securities depository (CSD). The full launch of the CSD will be in the fourth quarter of 2020 rather than the originally scheduled summer of 2019. The firm indicated that the prototype aims to demonstrate the future of financial markets. The CEO indicated that key elements consist of customization and integration of the security token to the firm’s current connectivity.
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