Sygnum, a large cryptocurrency bank in Switzerland, has successfully marked its shares on a blockchain in preparation for the upcoming public sale.
According to an official announcement on December 14, the bank tokenized its shares on the Ethereum blockchain using a proprietary tokenization platform called Desygnate.
The blockchain-based platform outputs digital representations of stocks and the associated legal rights and obligations in a distributed general ledger and offers an alternative to conventional capital procurement options such as an IPO or an initial public offering. At the end of November 2020, the platform should be fully compatible with the new Swiss law on distributed ledger technology, which will come into force from February 2021.
Mathias Imbach, co-founder of Sygnum and CEO of Desygnate, said that Sygnum is the first bank in the world to market its own stocks:
“We are pleased to be the first bank in the world to label our shares. This is an important milestone in fulfilling our mission to create more direct and efficient access to property and value. This includes new engagement models for our customers and partners and ultimately the provision of liquidity for our trustworthy shareholders. “
Through this tokenization, Sygnum aims to simplify a number of processes related to the company’s shares, such as: B. the need for buyers to notify Sygnum to manually update the register of shareholders. Tokenizationalso reduces the administrative burden of the written requirements for the transfer of shares between buyers and sellers.
Sygnum is currently examining various strategies for its future public offering, including a possible double listing on SIX Digital Exchange.
Sygnum, headquartered in Zurich, claimed to be the first Swiss company to become a crypto bank. The bank has aggressively rolled out new crypto services and is the first to issue a stablecoin for digital francs.