Invest faster and broader thanks to blockchain

On the internet, we store and exchange information, on the blockchain we will store and exchange valuables. This is how digital expert Lidia Kurt summarises the great potential of the “Internet of Value", as she calls it. Kurt has been advising the Boerse Stuttgart Group on blockchain topics since 2021 and is the head of BX Digital, the emerging blockchain trading venue of the Boerse Stuttgart Group.

She explains the possibility of digitally storing real values using an everyday example: “If I send a PDF via email today, it is only a copy. On the blockchain, values only exist in the original; there are no copies.”

Tokenisation: how assets enter the digital world

To transfer an asset – for example, a security, a piece of art or real estate – to the digital world, it must be tokenised. It is broken down into digital units called tokens. Each token represents a specific share of the underlying asset and is provided with a unique address on the blockchain – a randomly generated string of alphanumeric characters. This address enables the secure and traceable transfer of the token from one party to another – virtually at the “push of a button," according to Kurt.

We are committed to a hybrid model that combines the advantages of traditional trading with blockchain-based settlement.Dr. Lidia Kurt

BX Digital aims to combine traditional trading and blockchain settlement

The Boerse Stuttgart Group has founded a subsidiary in Zurich, BX Digital, to leverage the potential of blockchain technology for securities trading. “We have been building a trading and settlement venue for tokenised securities for around three years and in March 2025, we were the first Swiss financial infrastructure to receive approval from the Swiss Financial Market Supervisory Authority FINMA,” says Kurt.

“We are committed to a hybrid model that combines the advantages of traditional trading with blockchain-based settlement." Specifically, this means that trading itself continues to take place “off-chain" via the established trading systems, allowing banks and financial institutions to use their existing infrastructures. The real revolution takes place in the settlement of purchases and sales: “Blockchain-based settlement allows us to eliminate the need for intermediaries such as central securities depositories. This results in significantly faster settlement times, lower costs and reduced complexity," says Kurt.

While traditional settlement via central securities depositories usually takes two days, transactions on the blockchain can be settled directly between seller and buyer within minutes. According to Kurt, this is also more secure for the end customer, as they receive the security immediately.

When you bring securities into the digital realm, the playing field is enormous. Tokenisation allows us to equip securities with innovative functionalitiesDr. Lidia Kurt

Receive bond interest daily and other new investment opportunities

Blockchain technology does not just accelerate trading. “When you bring securities into the digital realm, the playing field is enormous. Tokenisation allows us to equip securities with innovative functionalities," says Kurt. For example, interest on bonds could be paid out not only annually or quarterly, but also daily thanks to the automated nature of blockchain.

Moreover, there are more investment opportunities opening up, especially for private investors. Given that large properties, wind farms, very valuable works of art or companies that are not listed on the stock exchange can be divided up more easily, it is possible to invest in them with smaller investment sums. “Imagine being able to invest in a fraction of a famous painting or a wind farm with just a few clicks. Tokenisation makes this possible," says Kurt.

And the banks?

What role will banks play in this new world of tokenised assets? Lidia Kurt is convinced that banks will continue to play a central role in the financial system in the future, especially in providing infrastructure and advice.

For even though blockchain technology enables the direct transfer of values, central questions remain; for example, who holds the digital keys – comparable to a password, i.e., a combination of letters and numbers – with which one can access the stored tokens? Who ensures that money laundering regulations are complied with? And who advises investors on which digital assets are suitable for them?

Kurt sees banks as having a responsibility to comprehensively advise their customers about the opportunities and risks of tokenised securities and to provide them with access to this new investment universe. She attributes another important task to banks: “They have the contacts and relationships with customers and established processes to comply with legal obligations, keyword KYC - know your customer.”

Blockchain is changing the economy; capital markets union is moving closer

Blockchain technology has the potential to change not only the financial market, but also the European economy as a whole. Kurt sees “the ambition of a capital markets union" moving a step closer thanks to blockchain.

“For the fragmentation of the European capital markets is not least due to the national silos in settlement," says Kurt. Blockchain, on the other hand, enables cross-border transactions that can be processed quickly, cheaply and securely.

“If we manage to implement the uniformity that we largely have on a regulatory level, also technically, then we will have a reduction in complexity and costs that is significant, and then we can achieve precisely such a capital markets union," Kurt is convinced.

Blockchain technology is still in its infancy. But one thing is clear: the revolution of values has already begun. And it will fundamentally change the way we allocate and trade assets.