Deutsche Börse Alliances with Two Swiss Firms to develop a Reliable Digital Asset Ecosystem

Deutsche Börse Group has entered into a strategic alliance with Swisscom and Sygnum to collectively develop and grow a reliable financial market infrastructure for digital assets. The announcement was shared in a press release on 11 March.

Germany-based joint stock company Deutsche Börse Group will be utilizing the services of Swisscom, the Swiss Information and Communication Technology (ICT) firm and Sygnum, a Swiss and Singapore-based financial technology firm.

The press report mentions that the tokenization of assets is the next significant form of asset digitization and can possibly transform global financial markets. The emerging tokenized economy needs a trusted, complete and regulatory compliant ecosystem to expand its potential completely.

The expected core elements of the solution will incorporate issuance, access to liquidity, custody, banking services and all of the services utilizing the blockchain technology in a regulatory compliant environment.

The report further notes that the strategic partnership between the firms will jointly develop and improve the foundational elements of the digital asset ecosystem.

THE STRATEGIC PARTNERSHIP BETWEEN DEUTSCHE BÖRSE, SWISSCOM AND SYGNUM WILL ENHANCE THE FOUNDATIONAL ELEMENTS OF THE DIGITAL ASSET ECOSYSTEM

Jens Hachmeister, MD, DLT, Crypto Assets and New Market Structure, Deutsche Börse Group was quoted saying:

“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.”

Hachmeister, further explained that the firm would continue investing in new technologies. Also adding, that it will improve the development around DLT forward, which for now, is a prime focus of Deutsche Börse Group.

Deutsche Börse’s strategic alliance also includes an investment in Custodigit AG. Custodigit renders a technical solution for the custody of digital/crypto assets for regulated financial services businesses. Custodigit was founded in 2018 as a joint investment by Swisscom and Sygnum.

The integrated platform enables bank customers to handle the life cycle of their digital assets. Deutsche Börse, one of the main shareholders, will back the growth journey of Custodigit AG and the services it has to offer.

Deutsche Börse and Sygnum will be investing in daura AG. The company has built a platform that utilizes DLT to issue, safely transfer and register Swiss SME-shares, allowing non-listed firms to access the capital markets.

The report cites that Sygnum is in the regulatory process to obtain a Swiss banking and securities dealer license from regulator FINMA. The firm will offer complete banking services such as deposits, credit, custody, lending, capital issuance through tokenization, brokerage and asset management within the digital asset ecosystem.

Recently, Peter Thiel, co-founder of PayPal supported Tagomi Holdings Inc., a digital assets brokerage firm. Tagomi offers cross-border capital management, post-trade reporting, custody services, and one-click settlement features.

Digital asset tokenization is catching up its speed in digital currency environment as it utilizes decentralized ledger technology to provide secure and safe transfer of assets.