Introduced in 2021, the DLT Trading Facility License authorizes the operation of a financial market infrastructure specifically for trading DLT securities, which are securities issued on the blockchain. This innovative license consolidates several functions into one, allowing for the provision of an order book for DLT securities trading, as well as atomic settlement and clearing of trades. Traditional trading venues typically require multiple licenses, such as CSD, CCP, and trading venue or stock exchange licenses. 

This license also enables the operation of an Organized Trading Facility (OTF) and allows for the provision of custody services for DLT securities to a certain extent. Additionally, it permits direct participation by retail investors on the platform. Platforms solely dealing with crypto assets like payment and utility tokens, which are, in principle, not classified as securities under Swiss law, generally do not require a DLT Trading Facility License but may need an SRO membership instead.

Note: The law also provides for a "small-scale" license, which includes certain volume restrictions, making it suitable for smaller to medium-sized operators.

SynHedge is your ideal partner for navigating the licensing process, leveraging its extensive expertise in the crypto sector to ensure a smooth and efficient application.