Swiss banks in Basel-City and Zurich have issued digital bonds using real Swiss francs on SIX Digital Exchange. This is the first time it has been issued using the Swiss National Bank’s wCBDC.
The digital bonds from Basel-City and Zurich are using new technology to change the way money is handled.
This is a part of Project Helvetia Phase III, started by the SNB on November. Starting from December 2, 2023, the goal is to make it easier for banks to test using digital currency. From 2023 to the middle of 2024. Basler Kantonalbank and Zürcher Kantonalbank helped the cantons by being the issuer agents for a big project.
The use of DLT in the financial market is a very important moment, as David Newns, Head of SIX Digital Exchange, points out. He said,
“The first time securities were traded using wCBDC in a regulated blockchain system in a real-world setting is a big achievement for the industry. “
SIX Digital Exchange is a place where people can buy and sell digital assets like cryptocurrencies. It follows rules set by the government and is allowed to operate as both a stock market and a place to keep digital assets safe.
The effects of this change go beyond just the Swiss financial markets. It shows how doing things better and being more open about money around the world can make things work faster and smoother. Furthermore, it shows how tokenized, DLT-based financial markets are changing and could become the new normal in the industry.
Thomas J strongly Jordan is the leader of the governing board of the Swiss National Bank.
With this test run, we are now able for the first time to securely and efficiently complete transactions using tokenized assets on a regulated and productive DLT platform using real wholesale CBDC.
It’s necessary to understand that while every blockchain is a type of DLT, not every DLT is a blockchain. Blockchain is a special kind of DLT that uses codes to control new units. Its data is put into blocks and then connected in a line. However, DLT can also include other structures that do not necessarily organize data into blocks or chain them together.
The pilot clearly shows that Swiss banks are looking at different ways to use DLT instead of just using traditional blockchain.