SIX, Switzerland’s stock exchange, is set to launch a European cryptocurrency trading platform aimed at meeting the growing institutional interest in digital assets.

This new platform will be exclusively available to institutional investors, such as asset managers, pending necessary regulatory approvals.

Switzerland's favorable regulatory environment and its reputation as a crypto-friendly jurisdiction are key factors in attracting traditional investors.

Björn Sibbern, the Global Head of Exchanges at SIX Group, emphasized that the platform will focus on spot crypto trading and derivatives, recognizing cryptocurrency as a global asset class.

This initiative aligns with a broader trend where traditional financial institutions are increasingly incorporating crypto trading services.

The recent approval of spot Bitcoin and Ethereum ETFs by the US SEC has reignited interest among both retail and institutional investors.

Despite the rising interest in cryptocurrencies, many traditional financial firms remain cautious due to regulatory uncertainties and reputational risks.

Currently, top exchanges dominate the market, accounting for about 70% of the spot trading volume, indicating a concentrated trading environment.

Recent data shows a significant increase in trading volume on centralized exchanges, with a notable rise of 5.38% in August, reaching $5.22 trillion.

The launch of SIX's trading platform could pose a significant challenge to existing dominant exchanges like Coinbase and Binance.

SIX has been active in the digital asset space since 2018, having launched a digital exchange that lists several digital bonds.

Additionally, SIX operates a crypto derivatives platform called AsiaNext in partnership with Japan's SBI Group and is considering replicating this model in Europe.