Real-world test of market infrastructure for security tokenization

CMTA conducts successful test of full-scale infrastructure for tokenization

The Geneva-based Capital Markets and Technology Association (CMTA) has brought together Sygnum Bank and key DLT players in Switzerland, including Arab Bank, SEBA Bank, Hypothekarbank Lenzburg, Vontobel and Swissquote, to successfully test the full lifecycle of tokenizing securities. This test covered primary issuance, custody, secondary trading and settlement. Read the full press release here.

The commercialisation of asset tokens is still in its infancy, with the current solutions mainly consisting of piecemeal, unregulated offerings covering only one part of a security’s life cycle. This initiative is particularly significant because it demonstrates the ability for key digital asset infrastructure players and their solutions to work together and demonstrate the full value of tokenization for both issuers and investors.

Use of Sygnum’s Digital CHF token proves the benefits of an end-to-end on-chain transaction

As part of this initiative, Sygnum Bank undertook the secondary purchase and sale of a security token, with SEBA Bank and Hypothekarbank Lenzburg as counterparties. Sygnum’s Digital CHF (DCHF) token was used in the payment and settlement of the transactions, with fully on-chain delivery versus payment (DvP). This proves the viability and value of a tokenized ecosystem, where both securities and fiat are represented on tokens. DLT-based records and the ability to conduct real-time transfers mean the payment and settlement process can happen almost instantaneously, resulting in immediate DvP (T+0) – giving parties the choice to optimise between time for liquidity management and settlement risk.

Landmark interbank transaction in tokenized ecosystem

The transactions between Sygnum Bank and SEBA Bank/ Hypothekarbank Lenzburg also mark the first between regulated banks involving tokenized securities with on-chain settlement, and it is a step towards the realisation of a regulated, dynamic tokenized ecosystem. Sygnum, SEBA Bank and Hypothekarbank Lenzburg, together with other regulated players in the space, form trusted nodes in a growing network – between which tokens can be transferred seamlessly with full compliance. Given the early stage of the industry’s development, this type of cooperation is important and will facilitate a path towards mainstream adoption of digital assets and tokenization. At Sygnum, we are committed to collaborating with other players to build the ecosystem and realise the value of DLT in the financial industry.

“Sygnum and the other banks involved in this initiative are trusted nodes in a growing network between which tokens can be transferred in full regulatory compliance. In addition, with the use of Sygnum’s DCHF, these interbank transactions can be completed seamlessly with near instant delivery versus payment.”
Mathias Imbach, Sygnum Co-Founder

Read next article

Local restrictions – Provision of cross-border services

It looks like you are using a computer with an IP address located outside of Switzerland. If you are located in Switzerland, please click “Continue” to access the Sygnum Bank AG (Sygnum) website. If you are not located in Switzerland, please read below.

 

This website and the information contained herein are addressed solely to persons residing or domiciled in Switzerland.

Sygnum is a regulated bank supervised by the Swiss Market Financial Authority (FINMA). The products and services on this website are authorised in Switzerland. Sygnum cannot promote its products and services in other countries where it is not authorised by the supervisory authority of that country to do so.

If you click on “Continue” to visit this website, you confirm that you have read and understood the above and you are visiting this website on your own initiative without any active promotion or solicitation from Sygnum.

 

If you want to visit the Sygnum Europe Website, please visit sygnum.com/eu.
If you want to visit the Sygnum Singapore Website, please visit sygnum.com/sg.
If you want to visit the Sygnum UAE Website, please visit sygnum.com/uae.

RETURN CONTINUE

Investor qualification

The following content is available to qualified investors. Please confirm your details below to visit this page, or please see our other digital asset updates here.

Qualified investor - As defined in Art. 10 (3) ff. of the Swiss Collective Investment Schemes Act. In particular, natural persons who have the knowledge required to comprehend the risks of the investments based on their individual education and professional experience or based on comparable experience in the financial sector and hold liquid assets of at least CHF 500,000.

A US Person is defined as (a) an individual who is a citizen or resident of the United States for federal income tax purposes; (b) a corporation, partnership or other entity created or organised under the laws of or existing in the United States; (c) an estate or trust the income of which is subject to United States federal income taxes regardless of whether such income is effectively connected with a United States trade or business.

Disclaimer:

The information in this publication pertaining to Sygnum Bank AG (“Sygnum”) is for general information purposes only, as per date of publication, and should not be considered exhaustive. This publication does not consider the financial situation of any natural or legal person, nor does it provide any tax, legal or investment advice. This publication does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum to purchase or sell any assets. No elements of precontractual or contractual relationship are intended. While the information is believed to be from accurate and reliable sources, Sygnum makes no representation or warranties, expressed or implied, as to the accuracy of the information. Sygnum expressly disclaims any and all liability that may be based on such information, omissions, or errors thereof. Any statements contained in this publication attributed to a third party represent Sygnum‘s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. Sygnum reserves the right to amend or replace the information, in part or entirely, at any time, and without any obligation to notify the recipient of such amendment / replacement or to provide the recipient with access to the information. Simultaneously, there is no obligation of Sygnum to inform recipients of information, if before provided information later becomes outdated, inaccurate or obsolete, unless otherwise provided by applicable law. The information provided is not intended for use by or distributed to any individual or legal entity in any jurisdiction or country where such distribution, publication or use would be contrary to the law or regulatory provisions or in which Sygnum does not hold the necessary registration, approval authorization or license. Except as otherwise provided by Sygnum, it is not allowed to modify, copy, distribute or reproduce, display, license, or otherwise use any content for commercial purposes.

Mandatory fields

Security alert

Stay alert to fraudulent communications. Sygnum will never post messages on social media or private messaging applications regarding Sygnum banking access or logins. If you have concerns, contact us.

Close