SIX launches Digital Collateral Service
12 February 2025 Switzerland
Image: Naturalis/stock.adobe.com
SIX has launched the new Digital Collateral Service (DCS) to enable financial institutions to post selected cryptocurrency assets as collateral alongside traditional collateral.
Firms managing both bonds and crypto can now post both as collateral to cover a single exposure.
SIX believes that it will simplify operations for traders and their counterparts, enhancing portfolio management efficiency and minimising counterparty risk.
Christian Geiger, head of clients and products, Securities Finance, at SIX, says: “With the growing institutional appetite for digital assets, we are committed to meeting the needs of this highly risk-conscious investor segment through our services.”
The firm developed this service by combining expertise from different areas in its international custody business and Six Digital Exchange (SDX).
The default protection for collateral held in this type of account structure adds a layer of security, according to SIX, encouraging greater participation in institutional cryptocurrency trading.
David Newns, head of SDX, adds: “The role of cryptocurrencies in collateral management will become increasingly important.
“Our new and fully integrated solution empowers product issuers, traders, brokers, and market makers to optimise their collateral usage, whether it’s crypto or traditional securities, with built-in risk management safeguards. This allows financial institutions to embrace crypto collateral on a larger scale.”
Firms managing both bonds and crypto can now post both as collateral to cover a single exposure.
SIX believes that it will simplify operations for traders and their counterparts, enhancing portfolio management efficiency and minimising counterparty risk.
Christian Geiger, head of clients and products, Securities Finance, at SIX, says: “With the growing institutional appetite for digital assets, we are committed to meeting the needs of this highly risk-conscious investor segment through our services.”
The firm developed this service by combining expertise from different areas in its international custody business and Six Digital Exchange (SDX).
The default protection for collateral held in this type of account structure adds a layer of security, according to SIX, encouraging greater participation in institutional cryptocurrency trading.
David Newns, head of SDX, adds: “The role of cryptocurrencies in collateral management will become increasingly important.
“Our new and fully integrated solution empowers product issuers, traders, brokers, and market makers to optimise their collateral usage, whether it’s crypto or traditional securities, with built-in risk management safeguards. This allows financial institutions to embrace crypto collateral on a larger scale.”
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