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Digital asset bank Sygnum tokenizes own shares ahead of future IPO

tokenized stock digital assets

Sygnum, the digital asset bank regulated in Switzerland and Singapore, announced it has tokenized its stock. Two weeks ago, the startup unveiled Desygnate, its ‘bank-grade’ token issuance solution, which it’s now using for its own shares. It says it will in the future explore a possible IPO with a dual listing on the SIX Digital Exchange (SDX) as well as the Singapore digital asset exchange announced last week as a joint venture between SIX and SBI.

Sygnum has an existing relationship with both firms. SIX and Sygnum own stakes in Custodigit and daura, and Sygnum recently launched an investment fund with SBI.

But we’re curious how they all fit together. We understand that SDX and SBI are the bigger players and are more likely to be institutional investment destinations, hence the IPO. But where does that leave Desygnate? After all, SDX and SBI both also have token issuance platforms. Will they compete or will Desygnate focus on unlisted stocks and assets? We didn’t receive a response from Sygnum in time for publication.

The bank outlines the typical benefits of digitizing its shares, including automation for capital increases and self-administering primary and secondary market transactions. Hence the administration burden falls away. It also sees the benefit of issuing fractionalized micro-shares to long term investors as rewards.

Switzerlands’ new DLT law comes into force in February 2021 and Sygnum’s solution is compatible.

“This is an important milestone towards fulfilling our mission of creating more direct and efficient access to ownership and value,” said Mathias Imbach, Sygnum Bank AG Co-Founder & Group CEO Designate. “This includes new engagement models with our clients and partners, and ultimately providing liquidity for our trusted shareholders.”