SDX Leads the Charge in Adopting Crypto Digital Token Identifier Standard

The financial industry is increasingly adopting the Digital Token Identifier (DTI) ISO standard 24165, which is a unique identifier for the digital asset market. The SIX Digital Exchange (SDX) has just become the first private distributed ledger technology (DLT) financial infrastructure to adopt the standard developed by the Digital Token Identifier Foundation.

What Is ISO 24165 DTI?

The DTI ISO standard serves to pinpoint digital ledgers, tokens, and cryptocurrencies. A vital tool for regulators, DTIs assist in supervising digital asset exchanges, ensuring compliance with anti-money laundering and counter-terrorism financing measures, and monitoring risks associated with global digital currencies.

ISO 24165 is structured into two main sections:

• ISO 24165-1 outlines the procedure for registering and assigning a DTI.
• ISO 24165-2 details the necessary data elements for registration and presentation in the DTI registry.

Underlining its importance, the European Securities and Markets Authority (ESMA) promotes the use of DTI within the EU's DLT Pilot initiative as a risk mitigation measure. ESMA is mandated to formulate additional guidelines concerning the DLT Pilot, where it advocates the application of DTIs.

"SDX uses DTIs to identify existing cryptocurrencies and soon digital securities on our platform," Alex Kech, the Head of Digital Securities at SDX, stated. "This will become even more pivotal as we delve into the issuance or management of digital securities on both private and public blockchains."

SDX Adopts DTI Standard for All of Its Services

As reported in a press release sent to Finance Magnates, SDX has become the first private DLT market infrastructure to decide on the implementation of the DTI standard across all of its products and services.

"We are thrilled to issue a DTI to SDX's DL and are pleased with SDX's adoption of DTIs on their platform. This marks another significant milestone for the industry in identifying digital assets in a standardized manner," Sassan Danesh, the CEO of Etrading Software, expressed.

SDX is an entity of the SIX Swiss Exchange, the third-largest stock exchange in Europe and one of the most recognized post-trade service providers. Despite challenging market conditions, the exchange concluded 2022 with a substantial net profit.

Last year, SDX entered into several vital collaborations, including one with Fireblocks, a technology platform focused on digital assets. Meanwhile, the exchange partnered with F10, tokenizing the company's shares.