SIX Digital Exchange (SDX), a wholly-owned subsidiary of Switzerland-based SIX, and FQX, a Zurich-headquartered fintech and blockchain startup, announced today that the companies have agreed to collaborate on blockchain-based short-term debt instruments.
Backed by prominent financial technology investors, FQX is a SIX Fintech Ventures’ portfolio company. The firm has more than 20 employees in Europe and Asia. According to FQX, it is using blockchain technology to revolutionize the global debt infrastructure.
The international short-term financing markets are growing rapidly. An estimate indicates that the annual global transaction volumes related to short-term financing are set to cross $65 trillion this year.
“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,” FQX explained.
SIX Digital Exchange
Last year, SIX Digital Exchange received regulatory approval from FINMA, the financial regulatory authority in Switzerland. With an aim to transform the digital asset ecosystem, SIX Digital Exchange offers different services, including listing, settlement, servicing and custody of digital currencies.
"SDX's collaboration with FQX, thus, represents a key step in the building out of our ecosystem by providing trading, settlement and custody of FXQ eNotes on SDX," said David Newns, the Head of SIX Digital Exchange.
"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," Benedikt Schuppli, the Co-Founder & Co-CEO of FQX, commented.
