Trend of Tokenization Series: R3's Corda to Tokenize Equities on Swiss Stock Exchange

The trend of tokenization across the globe is buzzing day-by-day, as per a research report tokenization market is getting more traction and is reportedly valued millions of USDs and is expected to grow exponentially by the end of 2023 with a swift pace of CAGR between 2017 and 2023. This is possible mainly because of robust Blockchain technology’s unique properties to tokenize the assets are commendable and potential seems to be infinite.

We’ve seen several instances of this trendy development in the recent past, Nasdaq’s initiatives in tokenization business has already been reported in our recent posts. Symbiont, a blockchain technology company, raised by a round of funding about $20 million that has been led by Nasdaq.

Nasdaq is, also in collaboration with Overstock, to develop security token platforms, they have unveiled tZERO, that is onboard with some features intending to become the first US regulated exchange to issue and trade security tokens on the blockchain.

The NASDAQ has now made an announcement to unveil two new indices, namely, Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) likely to provide a real-time spot or reference rate for the price of 1 BTC and 1 ETH, denominated in USD.

For now, the Swiss stock exchange operator, SIX Group, has now considered R3’s Corda Enterprise platform as the background technology for the crypto-asset trading, settlement, and custodian services. 

SIX has divulged to CoinDesk exclusively, about the move of choosing blockchain-driven Corda Enterprise. 

The news came as the chief digital officer at SIX Digital Exchange (SDX), Sven Roth mentioned the fact that Corda spans other areas beyond capital markets such as insurance and stretches to things like identity also was a factor. 

He clarified to CoinDesk, “this was very important to us because when we assessed different vendors, some of them were very focused on niche offerings and limited in their scope to very specific areas, such as post-trade for instance, and we didn’t want to be limited to just that area of expertise. We assessed a lot of vendors and technology stacks – all the ones you can imagine.”

A few days ago, Hong Kong-based Fusang Group has also made announcements of receipts of approval for a Securities Exchange license from the Labuan International Business and Finance Centre (IBFC), based in Malaysia. The Malaysia exchange is likely to render services into primary listings of public companies dealing with digital assets.

While Digix also has a DAO governance token (DGD) that enables access to the platform to tokenize any real asset. Digix Gold is known for the gold-backed crypto to begin trading with, available on Bitfinex and the Singapore-based exchange Kryptono.

DigixDAO is a self-organizing Ethereum entity (essentially just a smart contract) that DGX holders can participate in by voting on the governance and direction of the platform or through the advertising and promotion of it. 

We wish to reiterate with these live shreds of evidence of mounting interest in tokenization of trading or investing, one can understand that this has become a trending topic of 2019.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 65 levels (which is bullish), while hourly USD spot index was at 106 (highly bullish), while articulating (at 07:29 GMT).

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