Swiss crypto bank Sygnum is working hard to expand its services. In fact, this year the bank issued a first digital franc stablecoin. The crypto bank successfully tokenized its shares on a blockchain in preparation for its upcoming public sale. Let’s have a look at the information released by the Swiss crypto bank. Sygnum tokenized its shares on Blockchain using a proprietary tokenization platform called Desygnate.
People should take into account that, the blockchain-based platform issues digital representations of shares as well as associated legal rights and obligations on a distributed ledger, providing an alternative to traditional capital raising options such as initial public offering or IPO.
Interestingly, the platform is designed to fully compatible with the new Swiss distributed ledger technology law. As a reminder, this law enters into force from February 2021.
The crypto bank from Switzerland is the first bank in the world to tokenize its own shares. Notably, this is an important achievement. Also, thanks to this decision, it will be easier for the bank to create more direct and efficient access to ownership as well as value. Furthermore, this includes new management models with the clients and partners. The final objective is to provide liquidity to shareholders.
Crypto bank and public offering
Importantly, through this tokenization, the Swiss crypto bank aims to simplify a number of processes related to the company’s shares, such as the need for buyers to inform Sygnum to manually update its shareholder registry. This is not the end of the story, because tokenization also reduces the administrative burden of written form requirements for the transfer of shares between buyers and sellers.
It is worth mentioning that, at the moment Sygnum is exploring several strategies for its future public offering, including a potential dual listing with SIX Digital Exchange.
As a reminder, the Swiss crypto bank is located in Zurich. Based on the information provided by Sygnum, it was the first Swiss company to become a crypto bank. As mentioned above, Sygnum is working hard to introduce new crypto services. Furthermore, other banks should also pay more attention to such services. This way, it will be easier to make cryptocurrencies more popular around the world. Also, Switzerland has the potential to play an active role in this process. The crypto-related companies are willing to expand their services and in cooperation with authorities in various countries, it will be easier to achieve this goal.
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