TheDinarian
News • Business • Investing & Finance
New 1sts of their kind powered by Corda: SDX Tests Settling Digital Assets with CBDC
June 05, 2023
post photo preview

David Newns, head of SIX Digital Exchange (SDX), said the digital asset arm of SIX Swiss Exchange has benefitted from a flight to quality and is excited about taking part in a test with the Swiss National Bank to settle transactions with a central bank digital currency.

SDX formally received regulatory authorisation from FINMA to operate a stock exchange and a central securities depository for digital assets in Switzerland in September 2021 allowing the exchange to go live with a fully regulated, integrated trading, settlement, and custody infrastructure based on distributed ledger technology for digital securities.

Newns highlighted that SDX has benefited from a flight to quality since the collapse of FTX and the alleged fraud at the crypto exchange. He stressed it was important to differentiate between transactions on public blockchains and the underlying distributed ledger technology for digital assets.

“FTX has, without a shadow of a doubt, driven a conversation around counterparty risk and the need to have a trusted service provider in a jurisdiction that is effective in terms of oversight under regulations that are comprehensive, transparent and make sense,” he added. “We have seen empirical evidence that institutions are moving towards licenced service providers, especially for custody.”

Newns said a number of members have joined SDX and are issuing, trading and settling securities on blockchain technology in a fully regulated environment.

For example, in November last year UBS sold a CHF 375m bond that was issued on SDX’s DLT-based central securities depository. Investors have been concerned about the lack of liquidity in digital bonds  and so the UBS issue was the first native digital bond with intended dual listing and trading on SDX and SIX Swiss Exchange.

“In 2022 we built a bridge to enable dual bonds or equities to be issued on SIX and also on digital infrastructure,” added Newns. ”That helps with liquidity and any concerns that an issuer has around reaching the entire investor community.”

In January this year the city of Lugano in Switzerland sold a CHF 100m bond that was the first municipal digital bond ever to be issued on regulated financial market infrastructure according to SDX. Lugano’s bond became the first digital native asset accepted as eligible collateral for repos at SNB, the Swiss central bank based on the double listing on SDX Trading and SIX Swiss Exchange.

Ratings agency Moodys also said there is no difference in the risk factor analysis of a digital issuance on SDX compared to a traditional bond.

Alexandre Kech, head digital securities at SDX, said in a statement at the time: “I see this as an important signal to market participants that digital bonds have not only arrived in the domestic CHF bond market but have established themselves as an integral part of the capital market value chain in Switzerland.”

Settlement

Newns said that in addition to concerns about the liquidity of digital bonds, investors have expressed concerns about cash settlement. SDX has an account with the SNB and issues tokens on a one-to-one basis but Newns explained this is not equivalent to a central bank digital currency (CBDC). He added: “It is technically commercial bank money and that comes with a balance sheet charge.”

However, in March this year the SNB presented its Swiss Payments Vision, an ecosystem for future-proof payments, at its annual Money Market Event. The central bank said it would conduct a test for issuing digital issuances during a specified time period which will be settled with a CBDC.

 

“This will be the first time there has been wholesale CBDC settlements on regulated financial markets infrastructure anywhere in the world,” said Newns.


During its presentation, the central bank highlighted that in 2021 Switzerland became one of the first countries to adopt a comprehensive legal framework for the application of DLT and has also created a new licence category for DLT trading facilities under the Financial Market Infrastructure Act.

“This has created the basis in Switzerland for a regulated token ecosystem,” added the SNB. “The SNB is open to DLT and the token ecosystem and its potential for efficiency gains and risk reduction.”

The central bank also acknowledged that, at the same time, DLT can introduce new risks into the system and could fundamentally change the role of financial intermediaries, and the architecture of the current financial system. Therefore, the  SNB launched a project to test three models in payment and settlement with regulated financial market infrastructures and market participants.

One model involves integrated settlement using a Swiss franc wholesale central bank digital currency. In Phases I and II of Project Helvetia, tests of the issuance of a Swiss franc wholesale CBDC were conducted on the test environment of SDX.

The SNB said: “Building on the insights gained, we intend in particular to further explore the operational basis that would enable the SNB to issue wholesale CBDC for settlement purposes if necessary in the future. As part of the project, we will issue real wholesale CBDC on SDX for a limited time and test selected transactions with market participants.”

Newns said this test will start soon and will run over a few quarters. He added: “This turbocharges the whole situation.”

SDX is also building out a private markets ecosystem to tokenize private equity and increase the efficiency of the market.

SDX Web3 Services

In addition to SDX operating a regulated trading, settlement, and custody infrastructure, the group launched SDX Web3 Services in June last year. Newns described SDX Web3 Services as satisfying newly emergent demand for facilitating services within the Web3 ecosystem while it will take a longer period of time for securities to migrate onto new digital asset infrastructure.

SDX Web3 Services offers services to institutional clients based on blockchain technology and decentralized applications including, initially, digital assets custody and non-custodial staking. SDX said it considers the provision of industrial-strength, institutional-grade foundational infrastructure delivered by an efficient, secure and stable provider such as SIX as an essential step towards establishing the levels of trust needed for the further adoption of this evolving technology.

The business subsequently announced a strategic collaboration with Fireblocks, the digital asset and crypto technology platform, to provide institutions with infrastructure services for the distributed economy.

Newns said: “We are beginning to see the adoption of SDX Web3 Services as we leverage our Fireblocks custody platform.”

In April this year InCore Bank said it will offer Ethereum staking capabilities to their clients using SDX Web3 services that are fully compliant with know your client and anti-money laundering regulations. Switzerland’s InCore was the first B2B bank to receive FINMA approval for banking services with digital assets, back in 2020.

Staking is pledging crypto-assets to a cryptocurrency protocol to earn rewards in exchange. InCore Bank provides crypto brokerage, banking operations and custody services, while SDX Web3 provides crypto custody and non-custodial-staking services.

Mark Dambacher, chief executive of InCore Bank, said in a statement: “We perceive an increasing interest in staking and ways to participate in the decentralized economy. InCore Bank’s fully integrated and future-oriented staking services via segregated wallets, enable us to offer staking to our clients within a convenient, secure, regulated and tax compliant setting.”

SDX also has international ambitions. At the end of 2020 SDX and SBI Digital Asset Holdings announced plans for a Singapore-based digital issuance platform, exchange and CSD venue for institutional clients, subject to regulatory approvals from the Monetary Authority of Singapore.

Link

community logo
Join the TheDinarian Community
To read more articles like this, sign up and join my community today
0
What else you may like…
Videos
Podcasts
Posts
Articles
Brad Garlinghouse In Washington 🚀

It’s time for a fair and open level playing field.

Under Gary Gensler it was quite the opposite.

  • Brad Garlinghouse
    July 9, 2025
00:01:56
More Of The Same...l

🚨 JUST IN: Patriot Tom Fitton, who has been fighting DOJ and FBI to release documents for years, has practically thrown in the towel.

👉 "The justice department and the FBI are irredeemably compromised and corrupted.
The leadership needs to understand that and act accordingly." ~Tom Fitton

00:01:30
Christine Lagarde just gave Ripple & Circle A Shoutout!
00:00:44
👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading

same for: https://coinmarketcap.com/community/articles/686e68f5d405956445e039ff/

🚨 Ripple Picks BNY Mellon to Back RLUSD Stablecoin Amid Major Surge 🚨

Ripple has selected BNY Mellon, one of the world’s largest and most trusted financial institutions, to serve as the primary custodian for its RLUSD stablecoin. This decision comes as RLUSD experiences a surge in demand, highlighting growing institutional interest in Ripple’s stablecoin offering.

🔹 Institutional Partnership

🔹 BNY Mellon will safeguard the reserves backing RLUSD, ensuring transparency, security, and regulatory compliance for the stablecoin.

🔹 This partnership is designed to build trust with both institutional and retail users by leveraging BNY Mellon’s expertise in asset custody.

🔹 RLUSD’s Rapid Growth

🔹 RLUSD has seen a significant increase in adoption, reflecting confidence in Ripple’s approach to stablecoins and its commitment to compliance and transparency.

🔹 The collaboration with BNY ...

From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in OPEN SESSION, HYBRID FORMAT to conduct a hearing entitled, “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets.” The witnesses will be: The Honorable Summer Mersinger, CEO, Blockchain Association; Mr. Jonathan Levin, CEO, Chainalysis; Mr. Dan Robinson, General Partner, Paradigm; Mr. Brad Garlinghouse, CEO, Ripple; The Honorable Timothy Massad, Research Fellow and Director of Digital Assets Policy Project of the Mossavar-Rahmani Center for Business and Government, Kennedy School of Government at Harvard University, former CFTC Chairman; and Mr. Richard Painter, S. Walter Richey Professor of Corporate Law, University of Minnesota Law School, former Associate Counsel to the President and chief White House ethics lawyer.

https://www.banking.senate.gov/hearings/from-wall-street-to-web3-building-tomorrows-digital-asset-markets

‼️XRP ETF INFOGRAPHIC REVEALS AMERICAN EXPRESS UTILIZES XRP‼️

“A well-known company that uses XRP is American Express, which leverages RippleNet to enable realtime cross-border payments for corporate clients.

Through its partnership with Ripple, American Express uses XRP indirectlyvia Ripple's infrastructure to facilitate faster and more transparent transactions between the U.S. and international markets, helping businesses move money efficiently and reduce settlement times from days to seconds.”✅

OP: Smqkedqg

post photo preview
post photo preview
Musk Turns On Starlink to Save Iranians from Regime’s Internet Crackdown

Elon Musk, the world’s richest man and a visionary behind SpaceX, has flipped the switch on Starlink, delivering internet to Iranians amid a brutal regime crackdown.

This move comes on the heels of Israeli strikes targeting Iran’s nuclear facilities, as the Islamic Republic cuts off online access.

The former Department of Government Efficiency chief activated Starlink satellite internet service for Iranians on Saturday following the Islamic Republic's decision to impose nationwide internet restrictions.

As the Jerusalem Post reports, that the Islamic Republic’s Communications Ministry announced the move, stating, "In view of the special conditions of the country, temporary restrictions have been imposed on the country’s internet."

This action followed a series of Israeli attacks on Iranian targets.

Starlink, a SpaceX-developed satellite constellation, provides high-speed internet to regions with limited connectivity, such as remote areas or conflict zones.

Elizabeth MacDonald, a Fox News contributor, highlighted its impact, noting, "Elon Musk turning on Starlink for Iran in 2022 was a game changer. Starlink connects directly to SpaceX satellites, bypassing Iran’s ground infrastructure. That means even during government-imposed shutdowns or censorship, users can still get online, and reportedly more than 100,000 inside Iran are doing that."

During the 2022 "Woman, Life, Freedom" protests, Starlink enabled Iranians to communicate and share footage globally despite network blackouts," she added.

MacDonald also mentioned ongoing tests of "direct-to-cell" capabilities, which could allow smartphone connections without a dish, potentially expanding access and supporting free expression and protest coordination.

Musk confirmed the activation, noting on Saturday, "The beams are on."

This follows the regime’s internet shutdowns, which were triggered by Israeli military actions.

Adding to the tension, Israeli Prime Minister Benjamin Netanyahu addressed the Iranian people on Friday, urging resistance against the regime.

"Israel's fight is not against the Iranian people. Our fight is against the murderous Islamic regime that oppresses and impoverishes you,” he said.

Meanwhile, Reza Pahlavi, the exiled son of Iran’s last monarch, called on military and security forces to abandon the regime, accusing Supreme Leader Ayatollah Ali Khamenei in a Persian-language social media post of forcing Iranians into an unwanted war.

Starlink has been a beacon in other crises. Beyond Iran, Musk has leveraged Starlink to assist people during natural disasters and conflicts.

In the wake of hurricanes and earthquakes, Starlink has provided critical internet access to affected communities, enabling emergency communications and coordination.

Similarly, during the Ukraine-Russia conflict, Musk activated Starlink to support Ukrainian forces and civilians, ensuring they could maintain contact and access vital information under dire circumstances.

The genius entrepreneur, is throwing a lifeline to the oppressed in Iran, and the libs can’t stand it.

Conservative talk show host Mark Levin praised Musk’s action, reposting a message stating that Starlink would "reconnect the Iranian people with the internet and put the final nail in the coffin of the Iranian regime."

"God bless you, Elon. The Starlink beams are on in Iran!" Levin wrote.

Musk, who recently stepped down from leading the DOGE in the Trump administration, has apologized to President Trump for past criticisms, including his stance on the One Big Beautiful Bill.

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡  The Dinarian

Read full Article
post photo preview
GENIUS Act lets State banks conduct some business nationwide. Regulators object

The Senate passed the GENIUS Act for stablecoins last week, but significant work remains before it becomes law. The House has a different bill, the STABLE Act, with notable differences that must be reconciled. State banking regulators have raised strong objections to a provision in the GENIUS Act that would allow state banks to operate nationwide without authorization from host states or a federal regulator.

The controversial clause permits a state bank with a regulated stablecoin subsidiary to provide money transmitter and custodial services in any other state. While host states can impose consumer protection laws, they cannot require the usual authorization and oversight typically needed for out-of-state banking operations.

The Conference of State Bank Supervisors welcomed some changes in the GENIUS Act but remains adamantly opposed to this particular provision. In a statement, CSBS said:

“Critical changes must be made during House consideration of the legislation to prevent unintended consequences and further mitigate financial stability risks. CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors (Sec. 16(d)).”

The National Conference of State Legislatures expressed similar concerns in early June, stating:

“We urge you to oppose Section 16(d) and support state authority to regulate financial services in a manner that reflects local conditions, priorities and risk tolerances. Preserving the dual banking system and respecting state autonomy is essential to the safety, soundness and diversity of our nation’s financial sector.”

Evolution of nationwide authorization

Section 16 addresses several issues beyond stablecoins, including preventing a recurrence of the SEC’s SAB 121, which forced crypto assets held in custody onto balance sheets. However, the nationwide authorization subsection was added after the legislation cleared the Senate Banking Committee, with two significant modifications since then.

Originally, the provision applied only to special bank charters like Wyoming’s Special Purpose Depository Institutions or Connecticut’s Innovation Banks. Examples include crypto-focused Custodia Bank and crypto exchange Kraken in Wyoming, plus traditional finance player Fnality US in Connecticut. Recently the scope was expanded to cover most state chartered banks with stablecoin subsidiaries, possibly due to concerns about competitive advantages.

Simultaneously, the clause was substantially tightened. The initial version allowed state chartered banks to provide money transmission and custody services nationwide for any type of asset, which would include cryptocurrencies. Now these activities can only be conducted by the stablecoin subsidiary, and while Section 16(d) doesn’t explicitly limit services to stablecoins, the GENIUS Act currently restricts issuers to stablecoin related activities.

However, the House STABLE Act takes a more permissive approach, allowing regulators to decide which non-stablecoin activities are permitted. If the House version prevails in reconciliation, it could result in a significant expansion of allowed nationwide banking activities beyond stablecoins.

Is it that bad?

As originally drafted, the clause seemed overly permissive.

The amended clause makes sense for stablecoin issuers. They want to have a single regulator and be able to provide the stablecoin services throughout the United States. But it also leans into the perception outside of crypto that this is just another form of regulatory arbitrage.

The controversy over Section 16(d) reflects concerns about creating a regulatory gap that allows banks to operate interstate without the oversight typically required from either federal or state authorities. As the two Congressional chambers work toward reconciliation, lawmakers must decide whether stablecoin legislation should include provisions that effectively reduce traditional banking oversight requirements.

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡  The Dinarian

Read full Article
post photo preview
Dubai regulator VARA classifies RWA issuance as licensed activity
Virtual Asset Regulatory Authority (VARA) leads global regulatory framework - makes RWA issuance licensed activity in Dubai.

Real-world assets (RWAs) issuance is now licensed activity in Dubai.

~ Actual law.
~ Not a legal gray zone.
~ Not a whitepaper fantasy.

RWA issuance and listing on secondary markets is defined under binding crypto regulation.

It’s execution by Dubai.

Irina Heaver explained:

“RWA issuance is no longer theoretical. It’s now a regulatory reality.”

VARA defined:

- RWAs are classified as Asset-Referenced Virtual Assets (ARVAs)

- Secondary market trading is permitted under VARA license

- Issuers need capital, audits, and legal disclosures

- Regulated broker-dealers and exchanges can now onboard and trade them

This closes the gap that killed STOs in 2018.

No more tokenization without venues.
No more assets without liquidity.

UAE is doing what Switzerland, Singapore, and Europe still haven’t:

Creating enforceable frameworks for RWA tokenization that actually work.

Matthew White, CEO of VARA, said it perfectly:

“Tokenization will redefine global finance in 2025.”

He’s not exaggerating.

$500B+ market predicted next year.

And the UAE just gave it legal rails.

~Real estate.
~Private credit.
~Shariah-compliant products.

Everything is in play.

This is how you turn hype into infrastructure.

What Dubai is doing now is 3 years ahead of everyone else.

Founders, investors, ecosystem builders:

You want to build real-world assets onchain.

Don’t waste another year waiting for clarity.

Come to Dubai.

It’s already here.

 

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡  The Dinarian

 

Read full Article
See More
Available on mobile and TV devices
google store google store app store app store
google store google store app tv store app tv store amazon store amazon store roku store roku store
Powered by Locals