SIX and Banque Pictet & Cie said Thursday that they have completed a joint pilot project that successfully tokenised and fractionalised corporate debt instruments.
SIX and Pictet Conclude Pilot Project to Tokenise and Fractionalise Financial Assets
The move is said to mark a significant step toward more customisable and efficient investment solutions for asset managers.
The initiative involved tokenising euro- and Swiss franc-denominated corporate bonds held in custody at SIX SIS, before allocating fractional portions to portfolios managed by Pictet Asset Management.
The assets were processed via the SDX platform, SIX’s regulated blockchain-based financial market infrastructure.
“This milestone marks the first successful fractionalisation of securities on regulated blockchain-based financial market infrastructure in production,” said David Newns, Head of SDX. “Tokenised securities combined with fractionalisation on SDX enables more flexible, efficient, and inclusive financial services.”
The pilot is said to demonstrate how tokenised financial assets can support tailored investment strategies, operational efficiency, and greater diversification, even with smaller investments.
The firms explained that it offers a way for mutual funds to broaden access to fixed income markets and optimise portfolio rebalancing using automation.
Olivier Ginguené, Chief Investment Officer Multi Asset & Quantitative Investment at Pictet Asset Management, said: “It is the first time that tokenisation and fractionalisation have been combined in the Swiss market to enable real investments in traditional asset classes.”
The companies believe the collaboration confirms that tokenised assets combined with fractionalisation can deliver “real benefits across the fund management value chain, from operational efficiencies to enhanced outcomes and experience for investors.”
