Sygnum, a Swiss digital bank, has just announced that it has successfully tokenized shares in the company.
“…digital representations of Sygnum shares, together with associated legal rights and obligations, have been created and are immutably accounted for on a distributed ledger.”
This move was facilitated by the company’s own tokenization platform, ‘Desygnate’, which makes use of the Ethereum blockchain. With Desygnate being marketed towards institutional clientele, this tokenization effort is a perfect demonstration of what it can offer like-minded companies.
Perks of the Process
For those wondering why a company would tokenize its shares, Sygnum notes automation as a key reason why. Automation provides the following capabilities, each of which benefits both investors and Sygnum alike.
- Changes to the share registry will automatically be updated to reflect capital increases or share transfers
- Eliminates reporting requirements
- Reduced settlement times
In addition to the aforementioned perks, Sygnum notes that this tokenization now sets the stage for an eventual IPO by the company.
“This successful tokenization also lays the foundation for Sygnum to eventually go public. For its future public offering, Sygnum is currently exploring several strategies in its home markets of Switzerland and Singapore, including a potential dual listing with ecosystem partner SIX Digital Exchange (SDX) in Zurich, and also with the Singapore-based digital exchange partnership between SDX and SBI Digital Asset Holdings.”
Upon announcing this step forward, representatives from each, Sygnum and Six Digital Exchange, took the time to comment.
Sygnum CEO, Mathias Imbach, stated,
“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.”
Head of SDX, Tim Grant, stated,
“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.”
Acting as a Digital Asset Bank, Sygnum is the first of its kind. From its headquarters in Switzerland, Sygnum offers its clients safe access to investment opportunities in a variety of digital assets, such as cryptocurrencies.
In addition to its operations in Switzerland, the company has a growing presence within Singapore as well. This presence was strengthened last year, when the digital bank was granted a ‘Capital Markets Services’ license from the Monetary Authority of Singapore.
Currently, operations at Sygnum are overseen by CEO, Mathias Imbach.
In Other News
For those interested in other projects underway by Sygnum, make sure to check out our recently completed interview with Peter Hoffman, CEO of Custodigit.
Custodigit is a joint venture between Sygnum and Swisscom, which offers custodial solutions to financial institutions.