Sygnum Bank’s Group CEO Designate, Mathias Imbach, shares his views on the benefits of tokenization, Sygnum’s approach to developing its regulated end-to-end solution, and why the time for tokenization has finally come.
Sygnum Bank is proud to announce that it has launched its fully integrated, institutional-grade tokenization offering which comprises Desygnate, a primary market issuance platform, and SygnEx, a secondary market trading venue. This enables issuers to create unique investment opportunities for investors by connecting them seamlessly in one platform, and represents a landmark in the convergence of global public and private markets.
What is tokenization?
Tokenization is the process of creating a digital representation of a security, such as equity or bonds, on the blockchain. This improves efficiency in several areas – capital raising, shareholder registry updates, execution of corporate actions, as well as payment and settlement. In addition, the ability to issue micro shares on the blockchain can be leveraged in customer interactions – for example, by designing a loyalty incentive that transforms customers and business partners into engaged co-owners.
Sygnum Bank unleashes tokenization potential with end-to-end solution
Putting tokens on the blockchain is a relatively straight-forward technical challenge which is only the “tip of the iceberg” for tokenization. It is Sygnum Bank’s embedding of an end-to-end blockchain-based tokenization solution into existing legal frameworks and operational banking processes and systems that has truly unleashed the potential of tokenized assets for both issuers and investors. With Desygnate, Distributed Ledger Technology works in the background to deliver new levels of customer experience, efficiency, and transparency in the securitisation of assets.
Unique investment opportunities for portfolio diversification
Tokenization provides a fast entry-point for issuers to raise capital and build liquidity, unlocking the multi-trillion CHF global market of illiquid and currently hard-to-access assets by making them more widely accessible, affordable by fractional ownership, and more easily tradeable. Desygnate will initially focus on four high-growth investment verticals: Venture Capital, Mid Cap, Real Estate, and Art & Collectibles, allowing investors to profit from these asset classes which were previously seen as hard-to-access in a direct and fractional manner. Trading will be available on SygnEx, a regulated digital asset trading facility.
Significant amounts of fiscal stimulus injected into economies globally this year has driven up asset prices and is fuelling concerns over inflationary pressure. Investors are therefore searching for alternative investments that can provide returns on their capital. In this environment, tokenization will help to fill this need and broaden the investment universe available to investors, allowing them to build more holistic, diversified, and resilient portfolios.
Invest in digital assets easily and securely with Sygnum Bank.
Sygnum Bank is a regulated Swiss bank which specialises in digital assets. With a fiat-digital asset gateway, our private clients can use their deposited CHF, USD, EUR and SGD to invest in leading digital assets, including protocol tokens, a Digital CHF for instant settlement, and now asset tokens in Venture Capital, Mid Cap, Real Estate and Art & Collectibles. Investors will benefit from access to asset token opportunities on Desygnate, with the peace of mind that all assets and issuers have been vetted by Sygnum, and investors are onboarded by a fully regulated digital asset bank. Register here to view a demo of our Desygnate tokenization solution, or visit us at www.sygnum.com.
This document is purely for educational purposes and has been issued by Sygnum Group. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such marketing communication. It does not constitute an offer or a recommendation to subscribe, purchase, sell or hold any security or financial instrument. It contains the opinions of Sygnum Group, as at the date of issue. These opinions and the information contained herein do not take into account an individual‘s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes personalized investment advice to any investor. Therefore, you must verify the above and all other information provided in the document or otherwise review it with your external advisors. Some investment products and services, including custody, may be subject to legal restrictions or may not be available worldwide on an unrestricted basis. The information and analysis contained herein are based on sources considered as reliable. Sygnum Group uses its best efforts to ensure the timeliness, accuracy, and comprehensiveness of the information contained in this document. Nevertheless, all information indicated herein may change without notice.