There has been a lot of significant moves crypto-based companies are making, mainly because the digital assets are getting some recognition in the Finance sector. Analysts have described the decentralized nature of crypto as fast and efficient, removing time-wasting intermediaries and reducing transactions fees which occurs in traditional banking.
International transactions have been made easier with the blockchain technology, putting aside some foreign rules which might cause unwanted limitations for the parties involved. Sygnum joined the league of those companies when it announced its plans earlier this week to tokenize its shares.
Desygnate was used to tokenize the shares
The well-known cryptocurrency bank recently announced that it tokenized its shares on a blockchain platform. The tokenization was necessary to make it available for a future public sale of the shares. Desygnate was used for the tokenization on the Ethereum blockchain which the company made known its plans on 14th of December.
The current plans are creating a suitable alternative from the usual initial public offering, to a more digital approach, which represents the shares through a blockchain framework. The company assures that its platform was designed to follow the Switzerland laws on distributed ledger technology strictly.
The CEO of Sygnum and his co-founder proudly admitted that their company is the first institution to tokenize its shares fully. The duo reportedly that they are excited to be the first bank in the world to tokenize their shares and opined that it is an essential milestone towards fulfilling their mission of creating more direct and efficient access to the value.
Sygnum notes that inclusion of new engagement models its clients and partners and also providing liquidity for its trusted shareholders. The Switzerland-based bank assured that it would introduce any process necessary in terms of company shares to bring seamless access to it. It noted that the new technology would cut away time-wasting factors and bureaucracy such as written form requirement which makes the process longer.
New tech will simplify share acquiring process
The company promises a more straightforward approach in acquiring its shares. Also, the public offering would make use of the Ethereum blockchain. Sygunum hopes to make the process easier for primary and secondary markets to transact.
The platform was recently available for use an efficient ownership transfer, fundraising and building liquidity. Interestingly, within just two years of the company’s existence, this tokenization is the second it has done. The first was done in 2019, which introduced the share tokenization process.
Sygnum has admitted it will be using Singapore and Switzerland for its listing, being the most dominant locations in terms of its users. It will also be available on SIX, with the collaborative platform of SBI and SIX to be launched in two years to promote the digital assets industry.
The company’s users welcome the recent effort of Sygnum to give premium services always to its customers and shareholders. Dividends will now be received in a more manageable process without much stress from the side of the holder. The crypto space applauds the new creation and envisions a better process for efficient documentation.