According to PANews, the Swiss stock exchange group SIX has introduced a digital collateral service, enabling financial institutions to use crypto assets alongside traditional securities as collateral. As per the official press release, SIX operates one of Europe's largest triparty agents, offering collateral management solutions to financial institutions. This new service eliminates the need for separate platforms to manage crypto collateral, thereby reducing operational complexity and enhancing risk management. The system also provides additional protection in case of default.
The crypto collateral will primarily be used for crypto-related transactions, such as those conducted by exchange-traded product (ETP) issuers, institutional traders, and crypto exchanges. While the service allows for the use of bonds and Bitcoin as a combined collateral position, it is not applicable for repo transactions on the SIX exchange or as collateral for securities lending. Instead, it is designed to offer collateral solutions for OTC and bilateral crypto transactions. Initially, the service will support Bitcoin, Ethereum, Avalanche, Cardano, Solana, Ripple, and USDC, with plans to expand the asset selection based on customer demand.