Swiss National Bank accepts digital native asset as eligible collateral
20 February 2023 Switzerland
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The Swiss National Bank (SNB) has accepted a digital native asset as eligible collateral for SNB repos for the first time.
The bond was first issued by the city of Lugano in January 2023, with dual listings on SIX Digital Exchange (SDX) Trading AG and SIX Swiss Exchange.
The SDX says that the move represents a major milestone in the adoption of digital bonds and “another world first”.
According to Moody’s Investors Service, the different technology will not add materially higher risks compared to a traditional issuance.
Alexandre Kech, head of digital securities at SDX, says: “We are pleased that the SNB has included the Lugano digital bond in the SNB General Collateral Basket.
“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.”
The bond was first issued by the city of Lugano in January 2023, with dual listings on SIX Digital Exchange (SDX) Trading AG and SIX Swiss Exchange.
The SDX says that the move represents a major milestone in the adoption of digital bonds and “another world first”.
According to Moody’s Investors Service, the different technology will not add materially higher risks compared to a traditional issuance.
Alexandre Kech, head of digital securities at SDX, says: “We are pleased that the SNB has included the Lugano digital bond in the SNB General Collateral Basket.
“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.”
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