Another fiat-pegged digital currency is in line to hit the market, but this time will be issued by Switzerland’s largest stock exchange SIX.
According to a Coindesk report, the Zurich-based exchange is developing a stablecoin pegged to the Swiss franc.
“Yes, we are currently working on a CHF stablecoin – so Swiss franc,” a spokesperson of the exchange told the publication.
This came weeks after the head of securities and exchange of SIX revealed that the platform is considering to launch its own token.
Though the spokesperson confirmed that the coin will be facilitating transactions on the SIX’s upcoming blockchain-powered exchange, crucial details like if the stablecoin will be a platform-specific or can be used in all platforms, are still unknown.
The Swiss stock exchange is betting big on the crypto economy and already offers multiple crypto-backed exchange-traded products. It is also gearing up to launch its blockchain-backed exchange called SIX Digital Exchange (SDX) in the second half of 2019. It will provide access to tokenized securities and act as a platform for initial digital offerings (IDOs) – a process that looks like it will resemble an initial public offering.
The rise of stablecoins
In 2019, issuing stablecoin has become a new trend in the crypto economy. These digital currencies are pegged to physical assets, so their values are immune to wild fluctuations of the crypto market. Moreover, over the years, they have seen a huge adaptation by the trading platforms as listing crypto against a stablecoin provides fiat-crypto like trading experience, without the rigorous regulatory setbacks of the later.
Meanwhile, many financial institutions are also getting interested in stablecoins. The European Central Bank recently revealed that it is optimistic about the future of fiat-pegged coins for their usage in the mainstream economy, while the governor of the French central bank also put forth the bank’s interest in the new form of digital currency.