Today, the new SIX Digital Exchange (SDX), the regulated exchange for digital assets, announced its partnership with FQX, the Swiss platform for eNotes, blockchain-based promissory notes. This is a type of formalized short-term debt or IOU governed by the Geneva Convention. Although promissory notes are typically used alongside bills of exchange for trade finance, they have many other applications.
FQX sees the standardization it offers through the eNote as a huge advantage in breaking down siled short-term funding markets. By providing a market, SDX will help make instruments more liquid by allowing investors to trade them easily.
SIX Fintech Ventures was one of the investors in FQX’s $4.7 million funding round last year. In January, the startup launched an eNote pilot project with Credit Suisse and two Swiss manufacturers, SFS and Mikron. Credit Suisse is one of three banks currently active on SDX.
eNotes are essentially an NFT stored on a blockchain promising to pay a party a fixed sum of money at a later date. FQX uses the Hyperledger Fabric enterprise blockchain.
“As the world’s first fully regulated and fully integrated securities settlement and custody platform for trading, settling and custody of digital assets, we at SDX have built the strongest and most secure foundation on which to build a global liquidity network for digital assets,” said David Newns. , Head of SIX Digital Exchange.
“The network will be built by establishing strategic partnerships with providers such as FQX. SDX’s collaboration with FQX therefore represents a key step in building our ecosystem by providing trading, settlement and custody of FXQ eNotes on SDX.