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This Private Swiss Bank Has Tokenized its Equity Shares!

It is the first time in the history of Swiss law that a private bank has distributed shares in the form of ledger-based securities.

Image Credit: AC (1.1)

Taurus technology is being utilized by the independent Swiss bank Cité Gestion, founded in 2009, to tokenize (1) the bank's own shares. This action is a continuation of the company's ongoing efforts to expand its presence in the blockchain technology industry, and this step is a part of those efforts.

It is the first time in the history of Swiss law that a private bank has distributed shares in the form of ledger-based securities. It will work with the digital assets business Taurus to approve its tokenized shares, handle the smart contract that produces the shares and provide asset maintenance of its securities.  

Because tokenization, also known as the digitalization of various asset categories, enables participants in TradFi to attract more investors through blockchain technology, it has become a prevalent trend among financial institutions.

An official statement issued by Taurus stated that the unique standard in the virtual assets industry had become the new digitalization trend of private assets and securities.

In a related development, the investment management business Hamilton Lane (HLNE) recently announced that it would tokenize 3 of its assets in conjunction with the digital asset securities startup Securitize.

Tokenization was first conceived as a means by which the company may facilitate the provision of investment possibilities on private markets to corporate or ultra-high-net-worth investors.

In addition, the business intended to provide eligible investors in the United States with access to funds that provided exposure to direct stocks, private credit, and secondary transactions. These funds were going to be tokenized via Securitize's virtual transfer agency.

Other Banks Too Following Suite

This revelation was followed by yet another asset manager, KKR, which revealed its intentions in September to tokenize its Health Care Strategic Growth Fund on the Avalanche Blockchain. This news came shortly after the initial release.

The procedure of tokenizing the shares of the Swiss company Cité Gestion was carried out in a manner that was compliant with the rules outlined by the Capital Markets and Technology Association (CMTA), a non-profit organization located in Geneva.

The CMTA, an open-source smart contract supplied by the CMTA and particularly devoted to the tokenization of securities, was used in the construction of the tokens.

Taurus was established in April of 2018 and had previously obtained a securities license from the Swiss Financial Market Supervisory Authority the year prior. With this license, Taurus was able to provide investors and banks with the capacity to trade several assets, including tokenized securities.

The company has a lengthy history of tokenization as it has been involved in 15 projects up to this point. These projects include equity, personal debt, and fixed deposits from firms located in Switzerland and Europe.

In December of the previous year, Cité Gestion reached an understanding with the multi-family funds available Sartus Capital to combine their respective companies operations. On the other side, Sartus Capital was created in 2016 and now operates out of Geneva as its primary location.