In this section, guest contributors share their perspectives on economic and financial issues.

Switzerland is rightly regarded as a pioneer in digital assets. With its Distributed Ledger Technology (DLT) legislation, it established an internationally recognized legal framework at an early stage. In particular, the introduction of ledger-based securities has made it comparatively straightforward to issue and tokenize securities on distributed ledger infrastructure. Rather than creating an entirely new legal regime, lawmakers selectively amended existing legislation—a pragmatic approach that remains one of Switzerland’s greatest strengths.

Switzerland also enjoys a competitive advantage in DLT trading facilities. The country’s regulatory framework allows licensed platforms to combine the trading and settlement of tokenized securities without the restrictive volume limits imposed in many other jurisdictions. This creates a strong foundation for integrating tokenized securities into mainstream capital markets beyond isolated pilot projects.

The banking sector has also built impressive capabilities. According to FINMA, 54 of Switzerland’s 225 banks are already active in digital assets, offering services ranging from custody and client trading to staking, proprietary trading and tokenization initiatives. Many institutions have developed proprietary wallet infrastructure or partnered with specialized providers. Few financial centers can match this breadth of market participation.

Technically Ready, Operationally Constrained

Yet despite these strengths, Switzerland’s infrastructure is not evolving at the pace demanded by international competition.

Whenever a bank seeks to expand its digital asset offering, FINMA typically requires amendments to its articles of association and organizational regulations, together with a review of its risk framework. A bank that initially offers crypto custody, for example, must undergo additional approval processes before introducing crypto deposits, staking services or tokenized securities. Each new business activity requires fresh regulatory assessment, with internal implementation timelines often extending over several months.

«Switzerland has built an excellent infrastructure, but it is translating it into market-ready products only gradually.»

This creates a regulatory paradox. Switzerland possesses world-class infrastructure but is slow to convert it into commercially viable offerings. As a result, banks struggle to monetize their investments, while emerging business models are often assessed against today’s still-modest market volumes.

This is particularly evident in tokenized securities, where the market faces a classic chicken-and-egg problem. Trading volumes remain limited because too few market participants and infrastructures are interconnected. At the same time, further investment is delayed because the market itself has yet to reach critical mass.

Europe and the United States Are Accelerating

Abroad, policymakers and market participants are increasingly taking a different approach. While many European banks still lag behind their Swiss peers in digital asset infrastructure, political and commercial momentum is rapidly building. Stablecoins, cryptocurrencies and, above all, tokenized securities are increasingly viewed as essential components of the next generation of capital market infrastructure.

New platforms and strategic partnerships involving major financial institutions continue to emerge. One example is Seturion, a European settlement platform for tokenized assets that aims to support the development of an integrated European capital market.

Tokenization has clearly moved beyond the pilot phase. BlackRock and Franklin Templeton have launched multi-billion-dollar tokenized money market funds. DTCC is modernizing its capital markets infrastructure using DLT, while Nasdaq is working with industry partners to develop infrastructure for tokenized securities. The common denominator is a long-term investment mindset: infrastructure is being built for the market that is expected to emerge—not merely for today’s transaction volumes.

«When other markets execute more quickly, even a pioneer can quickly fall back into the middle of the pack.»

The United States is also making regulatory progress. U.S. providers are already serving international investors through offshore structures. Should the domestic regulatory framework become more accommodating, existing technologies and business models could scale rapidly.

Switzerland still enjoys significant advantages in legislation, infrastructure and expertise. But if competing markets move faster from regulation to implementation, that lead may not last.

A Coordinated Strategy Is Now Essential

The answer is not to weaken regulatory oversight. Security, stability and trust remain among Switzerland’s greatest competitive advantages. However, the country needs a more principles-based regulatory approach that enables institutions to expand proven infrastructures more quickly within clearly defined guardrails.

At the same time, the digital capital market cannot be built by banks, exchanges or technology providers acting independently. Issuers, banks, asset managers, trading venues and market infrastructure providers must scale together. Network effects will only emerge once sufficient products, market participants and liquidity are in place.

«The race will not be won by those who had the right idea first. It will be won by those who bring it to market first.»

Other countries have long recognized digital capital markets as a matter of industrial strategy. Switzerland should likewise view the next generation of financial market infrastructure as a strategic national asset—not only for cryptocurrencies, but especially for tokenized securities.

Switzerland has not missed the digital capital markets revolution. It has the regulatory framework, technological expertise and international credibility. But success will not be determined by who innovated first. It will be determined by who succeeds in bringing innovation into widespread adoption. Switzerland still has the lead. Now it must capitalize on it.

Lidia Kurt is Chief Executive Officer of Seturion and CEO of its subsidiary BX Digital, where she has played a leading role in developing digital market infrastructure for tokenized securities. Previously, she co-founded vision&, advising leading financial institutions on digital asset and DLT initiatives. Earlier in her career, she held positions at J.P. Morgan and Swiss Re in Zurich, London and Hong Kong. She is also the author of the book Digital Assets and Tokenization.

Read all previous guest contributions here.