1/ The Swiss Stock Exchange ($2 Trillion market cap) will be launching SIX Digital Exchange (SDX), the world’s first regulated digital market infrastructure using DLT. Work is being done with the Swiss Central Bank around a wholesale CBDC. Lets see how Quant could be used 👇 $QNT
2/ SIX operates the Swiss Interbank Clearing (SIC) system the RTGS system for the Swiss National Bank (Central Bank) as well as running Switzerland’s national Central Securities Despository (CSD). SIX are also owned by around 122 domestic and international financial institutions
3/ Project Helvetia successfully demonstrated the settling of tokenised assets with a wholesale CBDC and with linking a DLT platform to existing legacy payment systems in collaboration with SIX, SNB and the Bank for International Settlements. bis.org/publ/othp35.pdf
4/ Quant could be used with both the proof of concepts demonstrated, but will just briefly cover the first one which involved the issuance of a wholesale CBDC for Delivery Vs Payment settlement involving 2 commercial banks. Full text / diagram can be seen here.
5/ The process begins with a commercial bank sending funds to the Swiss Interbank Clearing (SIC) payment system. Which triggers an ISO 20022 message from the SIC to the SNB node in SDX.
6/ SDX uses R3’s Corda and so a solution such as Quant can be used to provide interoperability between the legacy system and the DLT system by being able to trigger the ISO message, Quant’s Overledger DLT Gateway based on ISO standards then translates that message through..
7/ it’s single scalable API and converts it into a format that the R3 Corda node on SDX can interpret
Upon receiving the message the SNB node then issues the equivalent amount of wholesale CBDC on the ledger which can then be used for Delivery vs Payment settlement of securities
8/ Whilst at the same time ensuring that SDX isn’t locked into one underlying blockchain platform and that it’s able to seamlessly integrate with existing networks as well as any other DLT solutions at scale. Whether that be Corda, Ethereum, Hyperledger or other DLTs
9/ The importance of this was stressed in a recent blog post sdx.com/blog/predictio… (Quant is actually providing solutions for each 5 of those predictions)
“In order to rebuild the systems of tomorrow, we must design them with the end goal in mind“
10/ Quant’s Multi-Ledger Tokens solution not only enables the issuance of CBDC’s / stablecoins from FIAT funds on legacy systems but it also enables them to be used across any DLT, a mixture of DLT’s public or private whilst maintaining a clear auditable record of ownership
11/ This is important for mass adoption opening up the walled gardens of different DLT solutions and being able to seamlessly integrate and move across any of them. Consumers / Merchants etc don’t all need to use the same platform.
12/ Phase 2 of Project Helvetia expands the integration further by integrating wholesale CBDCs into core banking systems as well as exploring cross border use cases with wholesale CBDCs.
13/ SIX have partnered with SBI in a joint venture connecting SDX with the Singapore-based digital issuance platform.
“This is an important step in building the necessary global infrastructure for widespread institutional adoption of digital assets”