The Ethereum Merge is coming

The Ethereum Merge is coming – Ethereum Mainnet will upgrade from a proof-of-work to a proof-of-stake consensus mechanism, the Beacon Chain, in mid-September 2022.

As the current proof-of-work process for block validating is energy-intensive, the merge will lead to a much more energy-efficient blockchain operation. According to the Ethereum Foundation, the nonprofit that funds Ethereum ecosystem development, proof of stake will cut Ethereum’s energy usage by around 99.95%. One focus for developers post-Merge will be sharding, which aims to improve Ethereum’s transaction speed and decrease its fees by spreading network activity across many shards.

Holders of ETH, the native token of Ethereum, can stake their assets to secure the network and, in return, will receive a reward. As Ethereum will automatically migrate to the Ethereum 2.0 network, they do not need to take any additional actions.


SDX is breaking new ground with the go-live of our first Web3 Services offering, Ethereum staking. Our product is designed for institutional clients who need to scale their Ethereum staking capability. With an API capable of managing the entire staking process, institutional clients can create new validators, generate deposit contract transactions, and monitor validator status in real time. Managing the Ethereum consensus layer infrastructure is complex and requires expert knowledge. SDX abstracts away the complications of blockchain infrastructure management and provides best-in-class service and support.

“Ethereum completes its biggest milestone yet, with the upgrade to proof of stake, in its 7-year history”, Alex Smith, SDX Web3 Staking Product Lead.

“By switching to a more energy-efficient consensus mechanism, Ethereum now opens the door for new institutional investors with an environment conscious investment thesis. This will not only support the protocol’s further development, but also allow investors to earn a reward for contributing to its operation”, Andrew Wishart, Senior Sales Web3.

In late 2021, SIX Digital Exchange (SDX), the world’s first fully regulated digital asset exchange and Central Securities Depository (CSD), went live. Securing public blockchains and providing yield-generating services through SDX Web3 Services, Staking is the next step in this evolution as SDX defines what it means to be a Digital Financial Markets Infrastructure provider. SIX has an enviable track record as a trusted provider of infrastructure services for financial markets. That history goes back over ninety years and encompasses a tradition of driving innovation in capital markets.

About SDX Web3 Services

SDX Web3 is a newly founded business line focusing on supporting our clients’ Web3 activities. As part of SIX, SDX Web3 is subject to the Group’s high quality and security standards in providing institutional grade infrastructure services for which SIX and SDX are well known.

About SDX

SDX is licensed by Switzerland’s financial market regulator, FINMA, to operate an Exchange and a Central Securities Depository (CSD). SDX offers issuance, listing, trading, settlement, servicing, and custody of digital securities. SDX went live in Q4 2021, and continues to work with partners, its current members (UBS, Credit Suisse, Zürcher Kantonalbank, CM Equity) and future clients to promote and build a new market structure for digital assets globally.

About SIX

SIX operates and develops infrastructure services for the Swiss and Spanish Stock Exchanges, for Post-Trade Services, Banking Services and Financial Information with the aim of raising efficiency, quality, and innovative capacity across the entire value chain of the Swiss and Spanish financial centers. The company is owned by its users (120 banks). With a workforce of 3,685 employees and a presence in 20 countries, it generated operating income of CHF 1.5 billion and Group net profit of CHF 73.5 million in 2021.


Interview with Paolo Guarnerio about Crypto Custody Developments

Paolo Guarnerio joined the SDX Web3 team in December 2022 as Senior Business Development Manager. In this interview, Paolo provides valuable insights into the current and future trends of the market. He discusses the growth of custodians targeting institutional clients, the impact of regulatory regimes on the crypto custody market, and the challenges facing service providers…

Interview with Stephan Kunz about recent crypto market developments

In this interview, Stephan Kunz, Business Head at SDX Web3, shares his views on recent crypto market developments and what this means for SDX Web3 and its clients going forward. He anticipates what impact greater institutional adoption will have on crypto markets and the most promising areas for development. Stephan will also discuss why SDX…

Our DLT predictions for 2023

The world of DLT is rapidly evolving, and it’s more important than ever to stay ahead of the curve. In this spirit, here are our predictions for what will happen in 2023. TradFi best practices and standards are adopted by/forced onto CeFi With the 2022 debacle of Centralised Finance companies e.g. FTX, Traditional Finance (TradeFi)…

Want to get updated about the latest blog posts from us?

Our newest insights directly to your inbox.