Swiss securities exchange SIX launches digital mortgage service, will Cryptocurrency become a "regular army" in the financial system?

Crypto Assets finally enter the core of the traditional financial system!
Recently, according to PANews, the Swiss securities exchange group SIX launched a digital collateral service, allowing financial institutions to use encryption assets as collateral together with traditional securities.

This means that encryption assets such as Bitcoin, Ethereum, Solana, Avalanche, etc., are no longer just 'speculative products,' but have officially entered the asset pool of institutional-level financial transactions! What does this really mean? What changes will occur in the market? Let's break it down in depth.

📌 1. What is the digital mortgage service of SIX?

SIX (Swiss Exchange Group) is one of the most important securities exchanges globally, providing traditional financial and digital financial services. The core goal of the digital collateral service launched this time is to make crypto assets become institutional-grade financial instruments, increase liquidity, reduce operational complexity, and enhance risk management capabilities.

🔹 Supported Assets:
• Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Cardano (ADA), Solana (SOL), Ripple (XRP), USDC
• More assets may be supported in the future, depending on market demand.

🔹 Application Scenarios:
• Suitable for ETP issuers, institutional traders, exchange of encryptionexchange transactions
• Repurchase transactions or securities lending are not applicable to SIX exchange.

📌 Core Impact:
1️⃣ Simplify encryption collateral management, reduce the technical barriers for institutions to adopt encryption assets
2️⃣ Improve risk management to make default settlement more transparent and efficient
3️⃣ Crypto Assets further integrate into the mainstream financial system, enhancing credibility and compliance

SIX's move indicates that traditional financial institutions are actively trying to use blockchain assets to complement traditional financial markets, rather than just treating encryption assets as speculative tools.

🚀 2. Why is this a major positive for the encryption market?

The digital mortgage service launched by SIX may bring four key impacts to the market:

✅ 1) Institutional investors find it easier to enter the encryption market
In the past, many institutions have been unable to enter Crypto Assets due to compliance issues and the difficulty of risk management.
• The compliance framework provided by SIX reduces the threshold for institutions to use encryption assets.
• More banks, exchanges, and investment funds may accept Crypto Assets in the future, accelerating institutional entry.

✅ 2) Mainstream currencies such as Bitcoin and Ethereum may see greater demand
The flow of institutional funds often determines the long-term trend of the market.
• Currently, SIX only supports a portion of mainstream coins, and may expand to more stable coins and DeFi assets in the future.
• This means that the institutional holdings of Bitcoin and Ethereum will continue to rise, driving prices up.

✅ 3）encryption market liquidity increased, volatility decreased
• Leverage and derivative trading in traditional financial markets rely on stable collateral management, and SIX's solution can effectively reduce the risk of default.
• This will stabilize the encryption market, reduce drastic fluctuations, and boost the confidence of long-term investors.

✅ 4) Promote more countries to follow suit, forming a global trend
• Switzerland has always been a global leader in financial innovation, and SIX's actions are likely to lead European and even global financial institutions to follow suit.
• In the future, mainstream exchanges in Europe and America may gradually open up collateral business for Crypto Assets to promote the integration of Cryptocurrency with the traditional financial system.

⚠️ 3. Possible Risks and Challenges

Although the digital mortgage service of SIX is a major positive for the market, there are still the following three major risks:

❌ 1) Regulatory uncertainty
• The regulatory policies of governments around the world regarding Crypto Assets are still unclear. Tightening regulations in the future could potentially impact the promotion of this service.
• The recent SEC regulations on stablecoins and encryption exchange in the United States may affect the acceptance of the SIX model in the European and American markets.

❌ 2) Asset volatility remains high
• Despite the strict risk control mechanisms established by SIX, the price volatility of Crypto Assets still far exceeds that of traditional financial assets.
• If extreme market conditions occur (such as the LUNA crash in 2022), it will test the stability of the system and the collateral management ability.

❌ 3) Acceptance by other traditional financial institutions
• The current plan of SIX has not yet been widely adopted by other mainstream financial institutions, and the market is still in an observation period.
• The key to the long-term development of the service is whether more banks, exchange, and custodial institutions will join in the future.

🔮 4. Future Outlook: Will the financialization of encryption assets accelerate?

This innovation by SIX could be a key step for traditional finance to fully embrace encryption assets.
If this model can operate successfully, there may be in the future:

1️⃣ More securities exchanges have launched similar encryption collateral services (such as Nasdaq, Deutsche exchange)
2️⃣ Mainstream banks (such as JPMorgan Chase, Goldman Sachs) launch compliant encryption asset custody and collateral business
3️⃣ The boundaries between DeFi and traditional finance are being broken, driving more complex financial derivative trading.

Cryptocurrency, as a "formal asset" recognized by institutions, may have taken the most critical step.

📢 Conclusion: How do you view SIX's move?

SIX's digital collateral service may formally bring Crypto Assets into the traditional financial system, but the market is still full of challenges.

🔹 Do you think this will drive more institutions to adopt encryption assets, or is it just a short-term trial?
🔹 Will mainstream assets such as Bitcoin and Ethereum become important collateral in the global financial system in the future?

Welcome to discuss in the comment area, follow me, and continue to track the latest developments in the encryption market! 🚀#币圈观察员