SIX Merges Digital and Traditional Asset Services Under FINMA Approval

SIX has received approval from the Swiss Financial Market Supervisory Authority (FINMA) to merge its digital central securities depository into its existing post-trade infrastructure, combining digital and traditional asset servicing into a single legal entity. The consolidation reflects a broader effort among market infrastructure providers to integrate digital assets into established systems rather than operating parallel frameworks, aiming to reduce fragmentation and align digital asset processing with existing regulatory and operational standards.

Integration of Digital and Traditional Infrastructure

The merger combines SIX Digital Exchange with SIX SIS, the group’s central securities depository. This integration allows both digital and traditional assets to be processed within the same infrastructure. By operating under a single entity, SIX can provide unified post-trade services, including settlement and custody, across asset classes, reducing the need for separate systems when handling digital and traditional securities.

The integration simplifies operational workflows for financial institutions, which often manage multiple systems when dealing with different types of assets.

Crypto Custody Within Regulated Framework

In addition to the merger, SIX received approval to offer crypto custody services through its licensed central securities depository. This extends regulated custody services to digital assets within the same framework used for traditional securities. The inclusion of crypto custody within a central securities depository structure provides a regulated environment for institutions seeking exposure to digital assets and introduces operational continuity, as custody processes align with existing systems.

Regulated custody remains a key requirement for institutional participation in digital asset markets, particularly for firms operating under strict compliance standards.

Unified Access Model for Institutions

SIX described the integration as a “one plug to two worlds” model, allowing institutions to access both traditional and digital assets through a single connection. This approach reduces complexity in accessing different markets. Rafael Moral Santiago, Head of Securities Services at SIX, commented: “By extending our CSD infrastructure to include crypto custody and integrating digital asset capabilities into our core offering, we combine digital asset innovation with the regulatory certainty and operational robustness of established financial market infrastructure.”

The unified model supports institutions that want to expand into digital assets without building separate operational frameworks and aligns with the trend toward multi-asset platforms in financial markets.

Post-Trade Infrastructure Evolution

Post-trade services, including clearing, settlement, and custody, are central to financial market operations. Integrating digital assets into these processes represents a step toward broader adoption within institutional markets. Traditional infrastructure providers are increasingly adapting their systems to accommodate new asset types, developing capabilities that maintain compliance while supporting digital asset functionality.

The shift toward integration reflects the need for consistency across asset classes, particularly as trading strategies and portfolios become more diversified.

Regulatory Framework and Market Development

Regulatory approval plays a central role in the integration of digital assets into existing systems. The involvement of FINMA indicates that digital asset services are being incorporated within established regulatory frameworks. This approach contrasts with earlier stages of digital asset development, where services often operated outside traditional infrastructure. Bringing these activities under regulated systems influences institutional participation and market structure.

Regulatory oversight also provides a basis for standardizing processes, which can support interoperability between different market participants.

Strategic Direction and Market Implications

The consolidation forms part of SIX’s broader strategy to expand its role in post-trade services across Europe. Integrating digital and traditional assets within a single platform supports this objective by offering a more comprehensive service set. The ability to process multiple asset classes within one system influences how institutions select infrastructure providers, with firms likely to prioritize platforms that can support both current and emerging asset types without requiring additional integration.

SIX indicated that the integration contributes to its long-term plan to develop a pan-European post-trade offering that includes digital assets as a core component. The integration of digital assets into central securities depositories may serve as a model for other infrastructure providers, with future developments likely to focus on expanding asset coverage, improving interoperability, and refining operational processes.