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Swiss-based Sygnum bank becomes first institution to tokenise its shares prior to public sale

Swiss-based Sygnum bank becomes first institution to tokenise its shares prior to public sale

Quick Take

1 minute read

  • Sygnum has just recently tokenised its shares on a blockchain in anticipation for an upcoming public sale.
  • In an announcement earlier this week, the financial institution gave an update on the sale saying that they have tokenised their shares on the ethereum blockchain by utilising a proprietary tokenisation platform known as Desygnate.

A big crypto related bank based in Switzerland known as Sygnum has just recently tokenised its shares on a blockchain in anticipation for an upcoming public sale.

In an announcement earlier this week on the 14th of December, the financial institution gave an update on the sale saying that they have tokenised their shares on the ethereum blockchain by utilising a proprietary tokenisation platform known as Desygnate.

By using digital representations of shares and related legal rights and obligations on a distributed ledger, the platform can provide an alternative to traditional capital raising options such as an initial public offering. Towards the end of November last month, the platform had been designed to be completely competent with the new Switzerland based distributed ledger technology law which is set to come into play February next year.

Co-founder at Sygnum and the chief executive officer of Desygnate have both said that Sygnum is going to be the first financial institution across the globe to tokenise its own shares. They further said:

“We are excited to be the first bank in the world to tokenize our shares. This is an important milestone towards fulfilling our mission of creating more direct and efficient access to ownership and value. This includes new engagement models with our clients and partners, and ultimately providing liquidity for our trusted shareholders.”

And with all of this in mind, Sygnum is open to making a number of processes in relation to the company's shares significantly smoother in the long run. This includes the need for buyers to get in contact with the company to manually update its shareholder registry as well as reducing the administrative elongation as written form requirements for the transfer of shares between the buyer and the sellers.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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