Switzerland Partners with Key Players to Drive Digital Financial Markets

Switzerland, known for its financial innovation, is partnering with key players in the Swiss financial markets to drive the development of digital financial markets. This collaboration aims to leverage the expertise of SIX, the Swiss National Bank, and six other commercial banks in a pilot project focused on tokenized central bank money.

Pilot Project: Helvetia Phase III

The pilot project, named Helvetia Phase III, is centered around creating a tokenized version of the Swiss Franc as a settlement instrument for financial institutions. The goal is to facilitate transactions involving digital securities on the SIX Digital Exchange (SDX). SDX, a fully regulated financial market platform for digital assets, will host the pilot and serve as a trusted gateway.

Leveraging Insights from Previous Phases

Helvetia Phase III builds upon the insights gathered from earlier phases of the pilot, Helevita 1 and 2. These earlier initiatives, conducted by the BIS Innovation Hub, the Swiss National Bank, and SIX Digital Holdings, have provided valuable data insights that will inform the development of the project.

Collaboration Details

The collaboration includes several existing SDX member banks, such as Banque Cantonale Vaudoise, Basler Kantonalbank, Commerzbank, Hypothekarbank Lenzburg, UBS, and Zürcher Kantonalbank. The pilot project will utilize the framework of Swiss Interbank Clearing SIC, operated by SIX and SIX SIS, the national Central Securities Depository (CSD) of the Swiss financial market.

Timeline

The pilot project is scheduled to run from December 2023 to June 2024.

Advancing Transparency and Efficiency

This collaboration highlights the role of Distributed Ledger Technology (DLT) in enhancing transparency and efficiency in the financial system. By embracing digital finance innovation, Switzerland is positioning itself as a leader in the field.