Swiss stock exchange SIX is exploring the launch of a brand new crypto trading platform in Europe, aiming to problem dominant gamers like Binance, Monetary Instances reported on Sept. 18.
Bjørn Sibbern, SIX Group’s international head of exchanges, acknowledged that the agency was assessing a platform to help spot crypto trading and derivatives actions as a result of the rising trade is more and more acknowledged as a professional asset class.
Institutional focus
In accordance to Sibbern, the proposed platform would serve solely institutional buyers like asset managers.
SIX plans to leverage its robust popularity and Switzerland’s favorable crypto regulations to entice institutional buyers to obtain this.
This transfer would profit from Switzerland’s clear crypto laws and provide a safe asset trading and custody atmosphere. Its goal of large-scale buyers would additionally add to the area’s aggressive benefit within the crypto area.
Notably, this comes as extra conventional monetary establishments like Standard Chartered and Singapore-based DBS have expanded their providers to embrace crypto-focused trading actions.
Market observers have linked this growth to the approval of spot crypto exchange-traded fund (ETF) merchandise linked to Bitcoin and Ethereum trading in the US.
Enhanced competitors
So, if SIX proceeds with its deliberate exchange launch, it may considerably problem main crypto-focused trading platforms like Coinbase and Binance, which at the moment dominate the market.
Knowledge from the blockchain analytics platform CCData reveals that trading quantity on centralized exchanges has been on an uptrend for the final two months. In accordance to the agency, spot and derivatives exercise elevated 5.38% in August, reaching $5.22 trillion.
CCData acknowledged that top-tier exchanges like Binance, Coinbase, and ByBit account for round 70% of this spot quantity.
So, the doorway of conventional establishments like SIX may pose new aggressive circumstances that would affect the dominance of those platforms out there.