Banque Pictet and SIX Conclude Landmark Pilot to Tokenize and Fractionalize Corporate Bonds

Private banking group Banque Pictet & Cie SA and Swiss financial infrastructure operator SIX have announced the successful conclusion of a pivotal joint pilot project that tokenizes corporate debt instruments and allocates them in fractional quantities to client portfolios. This initiative, which took place on the SIX Digital Exchange (SDX), marks a significant milestone in bridging traditional capital markets with the efficiencies of digital asset technology.

The project focused on both Euro (EUR) and Swiss Franc (CHF) denominated corporate bonds, which were held in custody at SIX's central securities depository (SIX SIS).

These conventional assets were then represented as digital tokens on the SIX Digital Exchange (SDX), the world's first fully regulated financial market infrastructure for digital assets. In a key innovative step, these tokens were allocated in fractional units to investment portfolios managed by Pictet Asset Management SA, seamlessly integrating with the investors' existing custody bank accounts.

"This pilot project demonstrates how tokenization can be used to open up new opportunities in traditional finance," said David Newns, Head of SDX. "We are very pleased with the results, which confirm the feasibility of issuing and distributing tokenized debt instruments in fractional amounts on SDX. We are paving the way for a more efficient and accessible future for capital markets, working closely with financial institutions like Banque Pictet."

The successful trial demonstrates a powerful real-world application for tokenization, a process that can unlock liquidity and broaden investor access to typically high-value or less divisible assets. The pilot’s outcomes provide valuable insights and demonstrate how the future of finance can become a reality today.

"We are excited about the successful completion of this pilot project, which underscores our commitment to embrace innovation and explore new technologies that can enhance the efficiency and accessibility of financial services," said Nicolas Pictet, Partner, Pictet. "We are delighted to partner with SIX on this pioneering project and look forward to further collaborations in the digital asset space".

By proving the model within a fully regulated ecosystem, Pictet and SIX are helping to pave the way for wider institutional adoption of digital asset solutions.

Banque Pictet & Cie was advised on the legal and regulatory aspects of the project by the Swiss law firm Lenz & Staehelin. The team was led by partners Dr. Jacques Iffland (Capital Markets) and Ariel Ben Hattar (Fintech and Capital Markets).