The Swiss stock exchange group SIX has introduced a Digital Collateral Service, allowing financial institutions to use crypto assets alongside traditional securities as collateral.

The service aims to streamline collateral management by reducing operational complexity and enhancing risk management, according to a company release.

SIX, one of Europe’s largest triparty agents, will initially support Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Cardano (ADA), Solana (SOL), Ripple (XRP), and USDC (USDC) as collateral, with plans to expand based on client demand. 

Collateral used on crypto-related transactions

Crypto collateral will primarily be used for crypto-related transactions, such as those involving exchange-traded product issuers, institutional traders, and crypto exchanges. However, it cannot be used for repo transactions or securities lending within SIX’s infrastructure.

The system leverages the custody solutions of the SIX Digital Exchange, ensuring seamless integration of digital and traditional assets.

SIX has been at the forefront of digital asset innovation, becoming the first to integrate a digital securities depository with a conventional central securities depository.

Its continued development of blockchain-based financial solutions, including hosting a wholesale central bank digital currency pilot, reinforces its position as a leader in digital finance.