Yesterday Swiss-based Sygnum Bank unveiled its security token solution. The digital asset bank regulated in Switzerland and Singapore has two platforms, Desygnate for ‘bank-grade’ token issuance and Sygnex for digital asset trading, both of which are blockchain-powered. It’s certainly not the first security token platform, but it claims it’s the first bank to offer end-to-end tokenization.
There are plenty of others, such as high profile Securitize, which recently made an acquisition to add a secondary market offering. The other Swiss digital asset bank, Julius Baer-backed SEBA, recently announced its tokenization plans with DASL and Tokensoft. Even law firm DLA Piper has unveiled a security token solution.
Sygnum promotes the usual advantages of tokenization such as fractional ownership, ease of transfer and greater liquidity for illiquid investments. Another is lowering the costs of access to capital for SMEs compared to the hurdle of a formal listing.
It also plans to enable settlement using its own Swiss Franc stablecoin.
Issuers ready to go
Several issuers are already lined up to join Sygnum’s platform across the markets it’s targeting. These include venture capital, mid cap, real estate, and collectibles, including art and fine wine. It says issuance is starting with secondary trading targeted in early 2021.
The highest profile issuer includes SBI. Sygnum recently partnered with SBI for the Digital Asset Opportunity Fund where tokenization of the fund will be explored.
Other issuers in the works include asset manager Azimut which plans to tokenize mid-cap investment products. There are also two real estate firms ImmoZins and Crowdlitoken as well as Fine Wine Capital.
In terms of ‘why now?’, Sygnum points to capital markets overheated with stimulus money, which it believes means investors have an appetite for alternative investments.