Digital Bonds by St. Gallen on SDX: A New Era of Virtual Finance.


Digital Bonds by St. Gallen on SDX: Experimenting with Digital Assets

St. Gallen in Switzerland is planning to issue a three-year digital bond worth $113 million through the SIX Digital Exchange (SDX). This project is part of a broader context of experiments with digital assets conducted in Switzerland, where more and more cities are joining in the issuance of tokenized bonds as part of the Swiss central bank digital currency (CBDC) experiment.

A New Era of Settlements: CBDC and Tokenized Euro

The digital bonds by St. Gallen will have the option of settlement in Swiss franc CBDC or tokenized euros. The banks managing the bond issuance are Kantonalbank, UBS, and J. Safra Sarasin, which adds prestige and trust to this innovative project.

What Are Bonds?

Bonds are debts issued by companies or governments to raise capital. They have a specified maturity date, and some require interest payments in the form of coupons. Tokenized bonds, like those issued on the SDX platform, are settled on blockchain infrastructure, opening up new possibilities for the financial market.

The Role of SIX Digital Exchange

SDX, as a subsidiary of the SIX Stock Exchange, has become a key player in the issuance of tokenized bonds for large institutions and smaller companies interested in an innovative approach to capital raising. European regulators supporting asset tokenization and the Swiss financial supervisory authority are providing support for the development of this area.

Global Trends in Asset Tokenization

The United Arab Emirates, Singapore, and Hong Kong are also actively working on regulations concerning asset tokenization. Introducing rules that allow companies to operate in the blockchain field and granting licenses for brokerage activities using cryptocurrencies are just some examples of global trends gaining importance in the financial sector.

The introduction of digital bonds by St. Gallen is a step towards digitizing financial markets, which could bring new opportunities and challenges for the entire industry. Further development of this technology could open doors to more efficient and transparent solutions in the area of capital investments.