The Swiss National Bank and the country’s SIX Digital Exchange are testing a wholesale central bank digital currency (CBDC) that could have a profound impact on risk management in the tokenized asset space, according to Alexandre Kech, Head Digital Securities at SIX. While a delivery versus payment (DVP) settlement should ensure that the payment for a security is made prior to or simultaneously to the security’s delivery, there is still a risk to the clearinghouse, with counterparty risk a significant factor in bilateral payments, he tells Aerial View. Kech adds that the digital franc pilot should eliminate this risk.