Switzerland Approves Its First DLT Trading Facility: A Milestone for Blockchain in Finance

Switzerland has taken a big step in blockchain and finance. The country’s financial authority, FINMA, has given its first license for a DLT (Distributed Ledger Technology) trading facility. The license went to BX Digital AG, a part of the Boerse Stuttgart Group. This is a major moment for blockchain in traditional finance.

This new platform will let banks and other regulated players trade digital assets on the blockchain. It will follow clear rules and offer safe and fast settlement. The goal here is pretty simple: combine blockchain’s benefits with the trust of a regulated system.

DLT technology is changing how people trade, record, and own assets. It offers transparency, speed, and the ability to remove intermediaries. With this license, Switzerland shows that DLT can be part of official finance— and not just stay as an experiment or be limited to a niche market. 

In this blog, we’ll look at how it works, why it matters, and where the future may lead.

What Is a DLT Trading Facility?

A DLT trading facility is like a regular exchange but built on blockchain. It’s made to handle digital assets—also called tokenized assets—that are kept on decentralized networks. These platforms let users trade things like company shares or bonds as tokens.

What makes DLT platforms different yet useful:

• They use smart contracts to settle trades automatically.
• They remove the need for intermediaries.
• They record everything on a public ledger.

These features mean faster transactions, fewer errors, and better tracking. With smart contracts, deals can be completed quickly and safely. This helps reduce fees and improves how assets are traded and settled.

What Switzerland Just Approved

BX Digital AG is now allowed to run a trading platform for tokenized securities. The license lets them do various things:

• Trade digital securities.
• Handle settlements.
• Use smart contracts to execute deals.
• Connect with the Swiss Interbank Clearing (SIC) system for payments.

The platform runs on the Ethereum blockchain. But it doesn’t offer custody services. Also, only regulated players like banks can join.

This is all under Switzerland’s DLT Act, which started on August 1, 2021. The law is made to support blockchain in finance while keeping markets safe.

This approval means Switzerland is putting clear rules in place, not just watching from the side. The DLT Act gives companies a legal framework to build new systems without taking unnecessary legal risks.

Why This Matters

This move is about more than just one platform. It is paving the way for the future of finance. 

Let’s find out how.

1. Clear Rules for Blockchain

Many countries still don’t have clear rules for tokenized assets. But Switzerland now does. With this license, it shows how blockchain can fit into existing systems without abandoning them.

This helps remove the legal uncertainty that stops many companies from launching token-based services. With strong legal backing, innovation can move faster.

2. Public Blockchains in Regulated Finance

BX Digital is using the public Ethereum blockchain. This is a big move. As we know, Public chains are open and secure, but many banks avoid them. This license shows confidence that it’s possible to use public chains safely and legally.

It also shows that public blockchains, if used properly, can be reliable and trustworthy tools for performing regulated finance activities and are not just for crypto enthusiasts.

3. Smart Contracts for Settlement

Deals will be automatically executed using smart contracts. That means fewer delays and lower costs. Smart contracts handle everything based on preset rules, making errors less likely.

Automated settlement also means better tracking and faster turnaround. It opens the door for new services where assets move instantly and securely.

4. Central Bank Connections

Payments will go through the SIC system, which is run for the Swiss National Bank. This bridges blockchain with central bank money. It’s a strong foundation of trust in this setup.

When blockchain connects to traditional money systems, it becomes more useful for banks and investors. This is how digital finance can grow in the real world.

5. Focus on Security and Readiness

To get this license, BX Digital had to show:

• It had a backup plan for blockchain issues.
• Its smart contract code was checked and secure.
• Its tech was ready for real use.

This level of preparation sets a strong example. Others hoping to enter this space now know what regulators expect.

What's Coming Next for Tokenization

This license is just the start. It could lead to more:

• More platforms may apply for similar licenses.
• Banks could start trading tokenized assets in a safe, legal way.
• Investors may gain access to new markets with lower fees and faster trades.

This also makes it easier to use tokens in real-world use cases:

• Real estate: Sell portions of buildings as tokens.
• Company shares: Handle ownership and voting through smart contracts.
• Bonds and loans: Automate interest payments.

These aren’t distant ideas. They’re already being tried and tested around the world. Switzerland’s move could make them more common and trusted.

The Bigger Picture

Switzerland is showing what happens when regulators, banks, and blockchain teams work together. Instead of obstructing transformation, they guide it.

This license helps move blockchain from being hype to something useful and trusted. It’s not just limited to digital coins now. It’s also expanding into various use cases for real-world assets— where assets are traded, tracked, and settled in smart, innovative ways.

More countries might follow Switzerland’s initiative. If that happens, we’ll see:

• Global token standards that work across platforms.
• Easier cross-border trading, backed by clearer laws and better systems.
• Enhanced trust in blockchain tools by both users and institutions.

But for that future to happen, we still need:

• Easy-to-use apps that hide blockchain’s complexity.
• Strong security tools to prevent fraud.
• Clear legal frameworks that protect everyone involved.

Blockchain won’t become mainstream just because it works. It will become useful when people can use it without worrying about it.

Final Thoughts

Switzerland’s approval of a DLT trading facility is a big step forward. It brings blockchain into real finance, with real rules and real impact. This isn’t a visionary idea or proof of concept—it's a live example of how tokenized finance can function under proper oversight. If more countries follow this approach, tokenized assets can become a common practice of everyday finance.

The tools are ready. We only need some improved design, strong partnerships, and steady progress. This license is proof that when people work together—developers, regulators, and institutions—blockchain becomes more than an idea. It becomes a working solution with real-world impact.

The future of tokenized finance is closer than we think. With steps like this, we’re not just building better systems. We’re building trust, global access, and long-term value.

How PrimaFelicitas can help?

Are you looking to launch a secure, compliant DLT platform or tokenization solution?

PrimaFelicitas can support your journey from concept to deployment. Our team of blockchain experts designs solutions that are scalable, regulation-ready, and tailored to your unique business needs. Whether you're looking for smart contracts or wish to integrate with public blockchains or design user-friendly interfaces, we're here to help.

Let’s bring your blockchain project vision to life. Contact PrimaFelicitas to get started today.