SIX has introduced the Digital Collateral Service (DCS), allowing financial institutions to post cryptocurrency assets alongside traditional securities as collateral. This new solution streamlines collateral management by enabling firms to use both asset types to cover a single exposure, improving operational efficiency and reducing counterparty risk.
Developed by integrating expertise from SIX’s international custody business and SDX, DCS enhances collateral management with robust crypto custody infrastructure. The service provides added security measures, addressing concerns of institutional investors and encouraging broader participation in institutional cryptocurrency trading.
David Newns, Head of SDX, commented: “The role of cryptocurrencies in collateral management will become increasingly important. Our new and fully integrated solution empowers product issuers, traders, brokers, and market makers to optimise their collateral usage, whether it’s crypto or traditional securities, with built-in risk management safeguards. This allows financial institutions to embrace crypto collateral on a larger scale.”
Christian Geiger, Head Clients & Products Securities Finance, SIX added: “Building on our role as a trusted financial market infrastructure and leveraging the flexibility of our state-of-the-art Triparty Agent, we are thrilled to expand our offerings to include cryptocurrencies as a new asset class for collateralisation. With the growing institutional appetite for digital assets, we are committed to meeting the needs of this highly risk-conscious investor segment through our established and reliable services.”
Subscribe to our newsletter
