Sygnum Bank and Fine Wine Capital issue first tokenized asset under new Swiss DLT law
Zurich: 1 February, 2021 - Sygnum Bank and Fine Wine Capital AG have successfully tokenized a range of premium investible wines, creating the first asset tokens issued under the new Swiss DLT law (i) , whose first provisions come into effect today. Assets tokenized on Sygnum’s Desygnate platform are issued under the incoming legal framework, and will be fully recognised under a new category of ledger-based securities.
The new legal provisions pave the way for the next generation of securities on the blockchain, and provide a robust legal foundation to realise the potential of asset tokenization
Sygnum has developed a framework to effectively implement its tokenization solution under these new provisions
Fine Wine marks Sygnum’s first asset token offering in the Art & Collectibles vertical, which is available to Sygnum clients from today
New DLT law introduces next generation ledger-based security
By adapting various federal codes, the Swiss DLT law cements Switzerland’s position as a leading jurisdiction in the rapidly developing DLT space, and provides a robust legal foundation on which the potential of asset tokenization can be realised. It paves the way for the next generation of securities by creating a new category with ownership records on a distributed ledger that are legally-binding, and that can only be transferred to others via this ledger.
Based on the new legal provisions, Sygnum has developed a framework which links the ownership of financial and real assets to a DLT-based asset token. With this, securities in the form of asset tokens can be conveniently and securely issued and traded, giving all parties the peace of mind that all associated legal rights and obligations will be automatically transferred to the new investor and fully recognised by the Swiss legal system.
Gino Wirthensohn, Sygnum Bank’s Head of RegTech, says “The legal provisions which come into effect today ensure that asset tokenization is now a viable alternative to traditional securitisation from a legal point of view. At Sygnum, we have developed a framework which allows us to efficiently issue our clients’ asset tokens under the new legal framework.”
Sygnum issues Fine Wine Tokens, first under new Swiss DLT law
The tokenization of Fine Wine Capital’s range of premium investible wines is also Sygnum’s first asset token offering in the Art & Collectibles investment vertical on Desygnate, the bank’s regulated primary issuance platform. Subscription to Fine Wine’s tokens is available to all Sygnum clients from today.
High-growth, attractive real asset investments like premium wine, fine art and diamonds are often illiquid and hard-to-access. Sygnum’s bank-grade tokenization solution enables issuers to make their unique investment opportunities more widely accessible, affordable via fractional ownership, and easily tradeable.
“Tokenization of wine assets enables us to expand our private collector investor base to new private and institutional investors interested in fractional ownership in distinctive real assets. This provides them the opportunity to hold, trade or request a physical settlement of this unique asset in an efficient manner,” says Alexandre Challand, Fine Wine Capital’s Co-Founder.
Fine Wines Capital AG was one of a strong cohort of issuers that took part in the recent launch of Sygnum’s bank-grade tokenization solution, including Gruppo Azimut (Mid-Cap vertical), Bak Motors (Venture Capital vertical) and ImmoZins and CROWDLITOKEN (Real Estate vertical). This fully integrated, institutional-grade solution is comprised of Desygnate, a primary market issuance platform and SygnEx, a secondary market trading venue. The bank has also tokenized its own shares on Desygnate, laying the foundation for a potential future public offering.
(i) Assets tokenized on Sygnum’s Desygnate platform are issued under a legal framework based on the amendments to the Code of Obligations, a subset of the new Swiss Federal Act on the Adaptation of Federal Law to Developments in Distributed Ledger Technology.
Sygnum is the world’s first digital asset bank, and a digital asset specialist with global reach. With Sygnum Bank AG’s Swiss banking licence, as well as Sygnum Pte Ltd’s capital markets services (CMS) licence in Singapore, Sygnum empowers institutional and private qualified investors, corporates, banks, and other financial institutions to invest in the digital asset economy with complete trust. Sygnum operates an independently controlled, scalable, and future-proof regulated banking platform. Our interdisciplinary team of banking, investment, and Distributed Ledger Technology (DLT) experts is shaping the development of a trusted digital asset ecosystem. The company is founded on Swiss and Singapore heritage, and operates globally. To learn more about Sygnum, please visit www.sygnum.com
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