The new product offers a solution through which clients can manage traditional securities and cryptocurrency collateral. Firms managing both bonds and bitcoin, for example, can now post both as collateral to cover a single exposure. This will simplify operations for traders and their counterparts significantly, enhancing portfolio management efficiency and minimizing counterparty risk. SIX has developed this service by combining and leveraging expertise from different areas in its international custody business and SDX.

Beyond providing a more seamless and holistic collateral management platform, DCS leverages the crypto custody infrastructure of SDX, delivering users enhanced safeguarding mechanisms. The default protection for collateral held in this type of account structure adds a layer of security that many institutional investors have been seeking to justify greater participation in institutional cryptocurrency trading.

Commenting on the launch of the new offering, David Newns, Head SDX, said: “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 optimize 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.”

Christian Geiger, Head Clients & Products Securities Finance, SIX, added: “Building on our role as a trusted financial market infrastructure and leveraging the flexibility of our state-of-the-art Triparty Agent, we are thrilled to expand our offerings to include cryptocurrencies as a new asset class for collateralization. With the growing institutional appetite for digital assets, we are committed to meeting the needs of this highly risk-conscious investor segment through our established and reliable services.”

Further information: The Digital Collateral Service from SIX


Any questions?

Please do not hesitate to contact Julian Chan.

 
About SIX
SIX serves the Swiss and Spanish financial centers and a broad international client base, offering stable and efficient infrastructure services. SIX operates stock exchanges and provides services in securities, financial information as well as the payments business. The company is owned by its users (about 120 financial institutions). With over 4,400 employees and a presence in 20 countries, SIX generated operating income of CHF 1.6 billion and EBITDA of CHF 443.7 million in 2024.
www.six-group.com