German based Deutsche Börse has reached an agreement to partner with Swisscom and Sygnum to create what the three firms describe as a “trusted digital asset ecosystem.” According to an announcement by Swisscom, this proposal would create solutions for the digital asset space, including in areas such as issuance, liquidity, custody, and banking services, all using blockchain technology.
The fintech industry has become an essential focus of technology throughout the world, as financial institutions, banks, government institutions, and other interested parties seek to find solutions to prevent hacking of accounts and transactions while also protecting other features of the financial sectors. Switzerland has been proactive in helping companies develop in their country, seeing an increase in spending while reducing regulation to promote a positive environment for organizations and businesses that wish to get involved in the development of these platforms.
These factors have led to over 365 fintech companies beginning operation in Switzerland last year alone, a 62% increase over the previous year. It has also meant that Switzerland could very well soon pass Germany in terms of the number of fintech companies and the amount of revenue spent toward assisting these companies in their endeavors.
The German government has not been as receptive to the development of these companies, making it almost necessary that companies like Deutsche Börse would seek to join forces with Swiss-based fintechs to try to improve technology to increase success.
To achieve their aims, the announcement added that Deutsche Börse and Sygnum had obtained the necessary securities dealer license from the Swiss banking system that would enable them to begin operations. The goal of this venture is to create a platform that can be trusted across the globe, while still meeting the regulations of the financial market in Switzerland.
Now that the license is in place, Sygnum will begin to set the stage to offer banking services through brokerage, tokenization, and asset management world within the design ecosystem. Currently, the venture is on hold awaiting approval of the partnership by the appropriate governmental agencies.
Deutsche Börse had announced exactly one year ago plans to develop a blockchain based system that would protect the securities lending process. Combined with the new venture, Deutsche Börse is expected to have a prominent role in the financial markets in Europe for some time. This appears to be an extremely shrewd move to combine their efforts with those in a country whose regulations are not as restrictive.
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