Switzerland: Financial Market Supervisory Authority approved BX Digital as first national distributed ledger technology trading facility

On 18 March 2025, the Swiss Financial Market Supervisory Authority (FINMA) authorised the first distributed ledger technology (DLT) trading system, operated by BX Digital AG. It was highlighted that BX Digital enables multilateral trading of DLT securities but does not offer custody services. The approval, based on Switzerland’s DLT framework, allows BX Digital to run a small DLT trading system with certain regulatory reliefs. It was also stated that settlement occurs through a public blockchain, Ethereum, and is linked to the Swiss Interbank Clearing system to ensure delivery-versus-payment through a smart contract. FINMA required a business continuity strategy and technical assessments, including smart contract code reviews, to mitigate operational risks.