Sygnum – a top-tier, Swiss-based crypto banking entity – has reportedly finalized the tokenization process for its shares on a blockchain, to stay ready for its upcoming public sale.
Specifically, Sygnum reportedly utilized a proprietary tokenization platform – dubbed Desygnate – to finalize the tokenization process on the Ethereum blockchain.
The blockchain-powered platform will reportedly generate distributed ledger-based digital representations of shares and associated legal rights and obligations, offering another method for traditional capital raising, nominally an initial public offering (IPO).
In November this year, the platform is reportedly created to have a complete sync with the new Swiss distributed ledger technology law, which will be in effect starting February next year.
“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.” Mathias Imbach, co-founder of Sygnum and Head of Desygnate, reportedly claimed that Sygnum is a world pioneering banking entity to complete tokenization for its shares.
By getting its shares tokenized, Sygnum reportedly looks to make a wide range of processes associated with said shares simpler, nominally where the buyers have to let Sygnum know to carry out manual updates of its shareholder registry.
Tokenization reportedly further brings down the amount of administrative work of written form requirements for the transfer of shares between buyers and sellers involved.