The first Swiss crypto bank, Sygnum, has successfully tokenized its shares using its proprietary tokenization platform in preparation for a public offering, the bank said in a press release on 14 December.
According to the announcement, the firm used its in-house developed Desygnate platform to become the first bank to issue digital representations of its shares on a blockchain. Launched last month, the tokenization platform offers an alternative to traditional capital raising options — such as Initial Public Offering (IPO) — by issuing representations of shares and “associated legal rights and obligations” on a blockchain. Sygnum’s co-founder, Mathias Imbach, said in a statement:
“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.”
The firm further claimed that its tokenization platform was fully compatible with the Swiss blockchain law set to come into force in February 2021. Through the use of Desygnate, firms will be able to simplify some of the processes associated with a company’s shares, such as the “written form requirements for the transfer of shares between buyers and sellers”. The platform will also eliminate the need for Sygnum to manually update its shareholder registry, as it will automatically update itself “whenever capital increases or share transfers occur”.
After tokenizing its shares, Sygnum is now looking to go public, and is exploring “several” strategies for a public offering in Swiss and Singapore markets, including a potential dual listing with the SIX Digital Exchange.