Swiss Asset Managers Eye Tokenization for Personalized Investment Solutions
In the heart of Switzerland, a groundbreaking collaboration between SIX Digital Exchange (SDX) and Banque Pictet & Cie SA has set a new standard for asset management. This joint pilot project, concluded in July 2025, marked the successful tokenization and fractionalization of corporate bonds denominated in euros and Swiss francs [1][2][3][4].
The project, hailed as a milestone by David Newns, Head of SDX, represents a significant leap forward for tokenized securities. Fractionalization, a key innovation, allows these bonds to be divided into smaller units, enabling a level of customization not easily achievable via traditional systems [1][3][4].
This development enables finer segmentation and greater diversification within personalized portfolios, supporting tailor-made investment strategies that conventional bond investing structures struggle to implement. The fractionalization on a regulated blockchain-based financial market infrastructure (FMI) allows essentially on-chain issuance, trading, and settlement without changing the legal nature of the bonds [1][3][4].
Markus Dinkelmann, analyst at the Swiss Asset Management Association (AMAS), agrees that the combination of tokenization and fractionalization could be a "game changer" for the industry. The success of this pilot project demonstrates how token-based fractionalization on a regulated platform broadens access to asset classes like corporate bonds, permitting smaller investment sizes and attracting a more diversified investor base, including banks and funds [1][3][4].
Olivier Ginguené, chief investment officer multi asset & quantitative investment at Pictet Asset Management, expressed his pleasure in collaborating with SIX on this breakthrough project. The tokenized assets were then allocated to investors via the portfolios' custody bank account [1][3][4].
Looking ahead, Citi plans to tokenize, settle, and safekeep assets on SDX's CSD to bring late-stage pre-IPO equities to institutional and eligible investors by the third quarter of this year [1][3]. Standard Chartered has also signed a memorandum of understanding to deepen its collaboration with SDX, planning to join SDX's CSD platform for digital asset custody to access Switzerland's digital securities ecosystem [1].
The underlying assets on SDX are held in custody within a regulated CSD, providing a more robust legal and operational foundation than relying on synthetic ownership structures. SDX issues book-entry securities under regulations in Switzerland, which can be passported into other jurisdictions [1].
SDX brings together a unique combination of capabilities including access to a huge pool of traditional securities, asset tokenization, and the ability to apply smart contracts and programmability. As of July 2025, there are currently 15 digital bonds and over CHF 2.3bn in total digital issuances on SDX [1].
With no significant obstacles or contrary viewpoints noted in the latest reports, the potential impact on Swiss personalized portfolios is significant. Asset managers like Pictet can offer highly customized bond exposure with scalable fractional tokenization, tapping into digital infrastructure benefits such as improved liquidity, operational efficiency, and investor accessibility that had been challenging under traditional bond market frameworks [1][3][4].
- The project between SIX Digital Exchange (SDX) and Banque Pictet & Cie SA, concluded in July 2025, showcases the potential of technology in finance, as it successfully tokenized and fractionalized corporate bonds, marking a significant leap for tokenized securities in business.
- The regulation of this token-based fractionalization on a blockchain-based financial market infrastructure (FMI) allows for easier diversification within personalized portfolios, opening up investment opportunities in digital assets like corporate bonds for a more diverse investor base.
- Following the success of their pilot project, SDX and Pictet Asset Management are planning to tokenize late-stage pre-IPO equities and digital assets, leveraging technology to bring efficiency and improved accessibility to the finance industry.
