Lugano Digital Bond Approved for SNB General Collateral Basket

At the beginning of 2023, the city of Lugano issued their first digital native bond on SIX Digital Exchange (ISIN: CH1232107172) with Zürcher Kantonalbank (ZKB) as sole lead manager.

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Following this issuance and based on the double listing on SDX Trading AG and SIX Swiss Exchange, the bond has become the first digital native asset accepted as eligible collateral for SNB repos.

This represents a major milestone in the adoption of digital bonds and another world first.

As already iterated by Moodys, there is no difference in the risk factor analysis of a digital issuance on SDX in comparison with a traditional bond. All eligible securities are available online on the “SNB General Collateral Basket” website at collateral.snb.ch.

“We are very pleased that the SNB has included the Lugano digital bond in the SNB General Collateral Basket. I see this as an important signal to market participants that digital bonds have not only arrived in the domestic CHF bond market but have established themselves as an integral part of the capital market value chain in Switzerland,” notes Alexandre Kech, Head Digital Securities at SDX.

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 is committed to working with partners, members, and clients to promote and build out 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. www.six-group.com

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SIX Digital Exchange (SDX) announces that digital asset issuances facilitated on its platform will surpass 1 billion Swiss Francs (CHF) with the settlement of the CHF 200mn bond by the World Bank priced on 15 May
Marco Kessler joined SDX in October 2018 and has been a key member of the team since its beginning. Marco brings 14 years of experience in capital markets and digital transformation to SDX.
Björn Flückiger joined SDX as Head Legal in February 2024. Björn brings over a decade of legal expertise in financial market law and fintech regulation, both in the public as well as the private sector. Amongst others, Björn was an integral part in the setup and operationalization of FINMA’s Fintech unit.