Crypto Valley’s DLT Framework Matures as Zug and Zurich Attract Global Blockchain Firms
Switzerland’s Crypto Valley is entering a more institutional phase. Zug remains its largest local cluster, while Zurich adds research depth, financial-market expertise and access to established infrastructure. The region’s appeal rests not on a blanket exemption for crypto businesses, but on a legal framework that applies existing financial rules to new technology and adds specific routes for tokenised securities. 1 2
From legal clarity to regulated market infrastructure
Switzerland brought its federal distributed-ledger technology (DLT) package into force on 1 August 2021. Rather than creating a separate legal universe for blockchain, the reforms adapted existing laws. They recognised ledger-based securities and created a route for a DLT trading facility to combine trading, custody or settlement functions under a single authorisation, subject to applicable conditions. 1 3
The distinction between technology and activity is central. A business does not become unregulated simply because it uses a blockchain. Financial-market rules still apply according to what a company does, the assets it handles, its clients and the risks involved. FINMA’s published framework requires a DLT trading facility to be established under Swiss law, headquartered in Switzerland and licensed by the regulator. 3
A concrete test came in March 2025, when FINMA licensed BX Digital as Switzerland’s first DLT trading facility under the dedicated DLT route. The company said it intended to provide trading and downstream settlement for DLT securities to supervised participants, usually banks; it does not provide custody. Its design links transfers on the public Ethereum blockchain to payment through the Swiss Interbank Clearing system, using a smart contract to support delivery-versus-payment settlement. FINMA also required operational safeguards, including continuity planning and technical review of smart contracts. 2
That authorisation did not mark the beginning of regulated digital securities in Switzerland. In 2021, FINMA had already authorised SIX Digital Exchange and SDX Trading as a central securities depository and stock exchange under the traditional Financial Market Infrastructure Act route. The example shows that Swiss law can accommodate more than one supervisory path, depending on how a platform is structured. 9
Zug and Zurich: a connected business base
The latest Crypto Valley report counts 1,766 active blockchain entities across Switzerland and Liechtenstein. It attributes 41% to Zug and 15% to Zurich, making the two cantons the principal centres within a broader cross-border ecosystem. The count is not a tally of companies in Zug alone. 4
The report also records $728.4 million in blockchain venture funding across 31 deals during 2025, equal to 47% of the European total in the report’s comparison. Zug accounted for 20 deals and 88% of disclosed capital, while Zurich recorded five deals and $77.3 million. These figures point to a strong financing centre, but they also show that investment is concentrated in a relatively small number of transactions. 4
Zug’s draw combines a long-standing international business community with founders, service providers, investors and specialist legal and financial expertise. The canton’s public economic-development portal lists organisations such as the Cardano Foundation, Bitcoin Suisse, the Ethereum Foundation, Crypto Valley Association and other blockchain companies. Its proximity to Zurich connects those businesses to a larger financial and academic centre. 5
Zurich contributes a complementary mix of banks, technology companies, universities and research institutes. Across the Greater Zurich Area, the regional economic-development agency points to universities, investors, industry partners and incubators as supports for fintech and blockchain businesses. The presence of both hubs lets firms choose between Zug’s concentrated crypto network and Zurich’s wider financial and research base, while remaining close to each other. 6
New rules are proposed; existing safeguards still apply
Switzerland’s regulatory approach continues to develop, but proposals must not be confused with rules already in force. In October 2025, the Federal Council opened consultation on changes to the Financial Institutions Act. It proposed two new categories: payment-instrument institutions, including a route for certain stablecoin issuers, and crypto-institutions serving clients with crypto-related services. The consultation closed on 6 February 2026. A June 2026 legal overview described the proposal as progressing through the legislative process, so these categories should not be presented as licences firms can use today. 7 11
Meanwhile, existing obligations continue to shape firms’ business models. FINMA’s stablecoin guidance highlights risks around money laundering, terrorist financing, sanctions evasion and guarantees provided by banks. The regulator’s message is that innovation must sit alongside safeguards for customers and the financial system. 8
Tax transparency is another part of the policy picture. Switzerland’s State Secretariat for International Finance says the crypto-asset automatic exchange-of-information framework cannot be implemented before 1 January 2027 at the earliest; the domestic legal basis will not apply in 2026. 10 This timetable is distinct from the DLT securities rules and should not be treated as a new licensing requirement for every blockchain company.
Closing Thoughts
Crypto Valley’s strength lies in the fit between experimentation and established finance. Zug offers a dense network of blockchain firms, while Zurich broadens the region’s access to banks, research and skilled professionals. Clear routes to market can attract founders, but trust depends on firms meeting the same standards of accountability expected elsewhere in financial services.
What does this look like in practice?
A tokenised-securities platform must decide whether its activity requires a dedicated DLT-facility licence or another existing authorisation. It then designs participant access, custody and settlement arrangements around those rules. BX Digital illustrates one route: supervised institutional participants, public-chain securities transfers and payment settlement connected to Switzerland’s interbank system. A stablecoin issuer, by contrast, must assess its own structure, guarantees and anti-money-laundering exposure under the rules that apply today; a future licence category cannot be assumed to be available yet.
What makes this significant?
A functioning digital-finance hub needs more than permissive rules. It needs a legal basis investors can understand, market infrastructure that can settle transactions, and supervisors able to address operational and financial risks. By refining its DLT framework while considering further reforms, Switzerland is making Zug and Zurich relevant to firms building regulated digital-asset services—not only to speculative crypto ventures.
Video references
• Euronews: What is Switzerland’s digital stock exchange SDX? — a short reference on the Swiss digital-securities infrastructure launched in 2021.
• CoinGeek: Zug, Switzerland – Crypto Valley and BSV — a field report featuring local ecosystem participants; it includes a BSV focus, so use it as a perspective rather than a neutral market survey.
References
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