BX Digital, a subsidiary of Stuttgart Stock Exchange, has received approval from Switzerland's financial market regulator, FINMA, to operate a blockchain-based trading system.

CEO Lidia Kurt highlighted that this regulatory approval is a significant step towards improving capital market efficiency and enhancing access for customers in the digital asset space.

The platform aims to become the leading Swiss financial market infrastructure for trading and decentralized settlement of digital assets.

A direct integration with the Swiss National Bank's payment system will facilitate connections with existing banking systems.

By facilitating direct asset transfers, BX Digital aims to offer faster and lower-cost transactions for tokenized shares, bonds, and funds among market participants.

The platform's use of blockchain technology is expected to significantly streamline transactions for tokenized financial instruments.

Overall, the BX Digital trading system represents a transformative step in the evolution of Switzerland's financial market infrastructure.

Utilizing Ethereum's blockchain technology, the new trading system will enable direct settlement and transfer of tokenized assets, eliminating the need for intermediaries like central securities depositories.

This innovative system allows for the trading of tokenized assets such as shares, bonds, and funds, enhancing efficiency and reducing costs for market participants including banks and securities firms.

Earlier this year, Boerse Stuttgart revealed that its crypto operations account for 25% of its total revenue, indicating the growing importance of digital assets.

To ensure liquidity, BX Digital is collaborating with market makers and has attracted considerable interest from banks and issuers, as noted by BX Swiss CEO Lucas Bruggeman.

This initiative is part of Boerse Stuttgart Group's broader strategy to modernize capital markets through blockchain technology, positioning it as Europe's sixth-largest exchange group.