Swiss crypto-bank Sygnum tokenizes its shares, prepares for public offering

Sygnum, a large cryptocurrency bank in Switzerland, has successfully tokenize its shares on a blockchain in preparation for its next public sale.

According to an official on December 14 announcement, the bank tokenized its shares on the Ethereum blockchain using a proprietary tokenization platform called Desygnate.

The blockchain-based platform issues digital representations of stocks and associated legal rights and obligations on a distributed ledger, providing an alternative to traditional capital raising options like an initial public offering or an IPO. At the end of November 2020, the platform is designed to be fully compatible with the new Swiss law on distributed ledger technology which comes 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 tokenize its own shares:

“We are delighted to be the first bank in the world to symbolize our actions. This is an important step towards achieving our mission of creating more direct and efficient access to ownership and value. This includes new models of engaging with our customers and partners and, ultimately, delivering liquidity to our trusted shareholders. “

Through this tokenization, Sygnum aims to simplify a number of processes related to the company’s shares, such as the need for buyers to notify Sygnum to manually update its shareholder register. Tokenization also reduces the administrative burden of written form requirements for transferring shares between buyers and sellers.

Sygnum is currently exploring several strategies for its future public offering, including a potential double listing with SIX Digital Exchange.

Based in Zurich, Sygnum claimed to be the first Swiss company to become a crypto bank. The bank has aggressively introduced new crypto services and is the first issuer of a stable digital franc.