Three months ago, SIX Digital Exchange (SDX) said it was planning an institutional digital asset custody offering and signed a deal with technology provider Fireblocks. Today, the SDX Web3 division announced that the custody solution is live, allowing institutions to delegate the operational and technical complexities of cryptocurrency custody to SDX.

The initial target clients are regulated, such as banks, product providers and investment managers, and are initially focused on Switzerland, with an eye on Europe.

SDX Web3 believes that the security standards associated with a major trading group like SIX separate the SDX offering from most others on the market.

SDX’s Stephan Kunz previously spoke about the new crypto custody service, saying, “The advantage of SDX is that it is a risk-free counterparty; we are not a financially exposed counterparty.”

Initially, the custody solution supports Bitcoin and Ether, with other tokens such as stablecoins and DeFi-related digital assets to be added in the future based on customer demand. In August, SDX announced the launch of non-custodial Ethereum staking services.

SDX encompasses both cryptocurrencies and real-world asset tokenization. When it launched last year, SIX issued a tokenized bond using the platform.

SIX is not the only renowned stock exchange associated with cryptocurrency custody. Last month, Nasdaq announced plans to enter the digital asset custody business, but we think it’s still early on the road. Other holders associated with the custody deals include Standard Chartered’s Zodia Custody and Nomura’s Komainu joint venture.

Major conventional custodians are getting in on the act, with BNY Mellon partnering with Fireblocks, State Street Digital with Copper, and BNP Paribas Securities Services with Fireblocks and Metaco.