Switzerland’s SIX Digital Exchange (SDX) and FQX, a SIX Fintech Ventures portfolio company, have agreed to collaborate to enable the use of FQX’s blockchain-based short-term debt instruments, eNotes, on SDX.
Annually, short-term financing markets transact some $65+ trillion in volumes globally. Due to legacy systems and a lack of global standardization, these markets are widely fragmented and inefficient, causing liquidity silos. FQX’s infrastructure for a standardized, digital debt instrument, the eNote, in combination with SDX’s digital financial market infrastructure, work hand in hand to break these silos. Thus, locked up liquidity is released while trust and transparency are enhanced.
An eNote is an unconditional promise to pay a specific sum to another party at a specific future date and can be modularly structured to fit any financing purpose. The eNote is based on blockchain technology and can be easily transferred to any third party, for example an investor. When compared to other financing tools, eNotes excel through their modularity and global transferability, based on a standardized legal framework. Single eNotes are stored as NFTs on a blockchain. By issuing multiple eNotes, an issuer can obtain financing in a way comparable to commercial papers.
“Bringing eNotes on to SDX is a crucial step for FQX on our mission to creating the global debt infrastructure for the future of finance, allowing institutional investors to directly access eNotes via their custody banks”, said Benedikt Schuppli, co-Founder and co-CEO of FQX, in a statement.
“As the world’s first fully regulated and fully integrated securities settlement and custody platform to trade, settle and custodize digital assets we at SDX we have built the strongest and safest foundation upon which to build a global liquidity network for digital assets. The network will be built by establishing strategic partnerships with providers such as FQX. SDX’s collaboration with FQX thus represents a key step in the building out of our ecosystem by providing trading, settlement and custody of FQX eNotes on SDX,” said David Newns, head of SIX Digital Exchange, in a statement.