Swiss crypto bank Sygnum becomes world’s first bank to tokenize shares

Sygnum, a top cryptocurrency bank in Switzerland has become the first bank in the world to issue it’s shares on a distributed ledger(blockchain).

The top Swiss crypto bank on Monday 14th December announced that it successfully tokenized it’s shares on the Ethereum blockchain using its institutional-grade tokenization platform, Desygnate. With the successful tokenization of its shares, Sygnum can now go public.

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Desygnate provides an alternative platform for corporations to raise capital that is regulatory compliant, highly efficient and with a more inclusive model compared to traditional options, like IPOs. Desygnate is fully compliant with the new Swiss DLT law which will be enforced from February 2021.

The tokenization of shares will enable the crypto bank to manage all its primary and secondary market transactions in a fully digital manner as Sygnum’s share registry will automatically update itself whenever capital increases or share transfers occur. This will eliminate paperwork for the transfer of shares between buyers and sellers, and the lengthy cash settlement processes involved.

Mathias Imbach, Sygnum Bank AG Co-Founder and Group CEO Designate, 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.

With the successful tokenization of its shares, Sygnum is considering to hold a future public offering and is exploring several strategies in Switzerland and Singapore with plans for a potential dual listing with partner SIX Digital Exchange (SDX).