Swiss bank Sygnum tokenized its shares using the Ethereum blockchain and Desygnate platform to tokenize assets. The bank also announced preparations for the upcoming IPO.
According to Sygnum, the blockchain-based Desygnate platform enables digitalized share creation in a distributed ledger, as well as associated legal rights and obligations. Sygnum co-founder and CEO of Desygnate, Mathias Imbach, said the bank’s tokenized shares would be an alternative to traditional capital raising options.
The platform will be fully compliant with the new Swiss Distributed Ledger Technology (DLT) law, which will take effect from February 2021. The Sygnum chief said:
“We became one of the first banks in the world to tokenize our own shares. This is an important step towards realizing our goal of providing direct access to property and valuables. We are talking about new models of interaction with our clients and partners, as well as providing liquidity to shareholders. “
Imbach added that the tokenization will increase the efficiency of many of the processes associated with Sygnum shares. The use of blockchain will simplify interaction with bank customers, updating information about shareholders, as well as administrative work related to the transfer of shares from sellers to buyers. Sygnum also began exploring various strategies for the bank’s public offering, including a dual IPO on the SIX Digital Exchange platform.
Sygnum is actively developing in the field of blockchain and cryptocurrencies. The bank added staking, custody, trading and lending with Tezos support this month. Sygnum previously partnered with Galaxus and Coinify to make the first payment using the Sygnum Digital Swiss Franc (DCHF) issued by Sygnum. DCHF is designed for fast and cost-effective settlement of securities.