Swiss-regulated cryptocurrency bank Sygnum tokenised its shares and plans to conduct the first DLT-based IPO among financial institutions.
News: Sygnum the world’s first bank to tokenize its shares, lays foundation for future public offering
This strategic milestone was achieved using Sygnum’s in-house tokenization platform, Desygnate.
Read the full press release here: https://t.co/ESUEO7RKYT
#Tokenization pic.twitter.com/NVIkdQkLhb— Sygnum Bank (@sygnumofficial) December 14, 2020
To issue security tokens, Sygnum uses the Desygnate platform, compatible with coming into force in February 2021 under Switzerland’s Blockchain Act.
The platform will enable issuers to carry out all regulatory procedures necessary for subsequent listing of shares.
The shareholder registry of Sygnum will be constantly and automatically updated with every transaction, allowing the bank to manage operations on primary and secondary markets in a fully digital manner. This eliminates lengthy settlement processes, thereby minimising counterparty risk. The platform will also help bypass the requirement for a written transfer of shares between buyers and sellers.
Sygnum plans to harness the smart-contract capabilities of tokenised shares to realise the full potential of the investor–issuer relationship.
“The tokenisation of shares provides investors with a fully regulated, highly efficient and potentially more inclusive alternative to traditional methods of capital raising,” the press release says.
The issuance of shares could precede a dual listing in Switzerland and Singapore, in partnership with SIX Digital Exchange.
Earlier, SIX Digital Exchange and SBI Digital Asset Holdings announced the launch in Singapore of a blockchain platform for institutional clients from Europe and Asia. The platform will offer issuance, listing, trading, as well as central securities depository infrastructure for cryptocurrencies and regulated security tokens.
Earlier, Sygnum received FINMA approval for the primary issuance, custody, and secondary trading of digital securities.
Subscribe to the ForkLog channel on YouTube!