Sygnum Bank AG, a digital asset bank based in Switzerland, announced today that it has successfully integrated distributer ledge technology to issue tokenized shares. Sygnum becomes the world’s first bank to completely tokenize its shares.
According to the official press release, the bank used its own tokenization platform, Desygnate to complete the implementation. Share tokenization is a process of creation and issuance of digital tokens to represent shares. Sygnum termed shares tokenization as an effective model to raise capital.
The new process removes the need for a manual update of the shareholder’s registry and eliminates the lengthy cash settlement processes. The bank plans to facilitate clients with faster secondary market transactions.
Commenting on the announcement, Mathias Imbach, Co-founder of Sygnum Bank AG 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.”
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Future Public Offering
The bank outlined that the recent tokenization is a foundation for a possible listing of its shares in Switzerland and Singapore through a strategic partnership with another Zurich-based financial services company, SIX Digital Exchange.
“As we build institutional-grade, future-proof financial market infrastructure that leverages the benefits of distributed ledger technology, we need credible players and pioneers to drive mainstream adoption. We are excited to partner with Sygnum on this journey and hope to facilitate a successful dual listing across Switzerland and Singapore in the future,” Tim Grant, Head of SIX Digital Exchange, said in a statement.
Switzerland has made significant progress in recent years in terms of crypto-friendly regulations for local and international companies. Finance Magnates earlier reported about the announcement from the Bank of International Settlements (BIS) about successful testing of CBDC project Helvetia with SNB and SIX.