Digital currency exchanges are trading venues solely for cryptocurrencies, mostly operated by unregulated brokers.
>> SDX sees itself as a digital exchange that integrates trading, settlement, and custody of any digital asset.
A distributed ledger gives everyone the same view of ledger entries. The decentralized architecture replaces intermediaries.
>> SDX will use a permission-based distributed ledger, which means that access and certain processes will require authorization from SDX.
An initial coin offering (ICO) is a digital IPO or project funding through the sale of tokens.
>> SDX will be capable of hosting ICOs in the future. An initial step toward that capability is the establishment of ICO services in collaboration with banks and FINMA.
A minimum viable product (MVP), unlike a prototype, already features the core functions of the final product.
>> SDX, in an MVP version, will activate trading of tokenized securities in mid-2019.
Trading of non-bankable assets such as paintings, real estate, and the like is not accommodated by today’s financial system.
>> SDX will technologically be capable of tokenizing non-bankable assets, thus rendering them tradable.
A smart contract emulates the logic of a contract in programming code.
>> SDX will allow the use of any type of smart contract and will thus provide an entirely new ecosystem for Switzerland’s financial center.
Tokenization will make any asset – including existing securities and non-bankable assets – digitally tradable.
>> SDX, in an initial step, will tokenize existing securities.