Tokenization
How often is GPA valued, and how is pricing determined for subscriptions and redemptions?
GPA is valued on monthly basis. Apex, the Fund Administrator provides NAVs per share and this NAV is used to determine the pricing for both subscriptions and redemptions.
What types of private market investments are included in GPA’s portfolio?
GPA’s portfolio includes a mix of direct equity, direct credit, secondary and opportunistic investments. This diversified approach helps to mitigate risk and enhance potential returns.
How long does the tokenization process typically take?
The duration of the end-to-end tokenization process can vary significantly depending on the complexity of the case, ranging from a few weeks to several months.
How can issuers market their tokenized offerings to potential investors?
Sygnum’s issuance platform, Desygnate, enables issuers to tailor their offerings by presenting essential information to potential investors in various formats—such as text, images, and videos—within a dedicated self-service space called the ‘Dataroom’, ensuring that potential investors have all the key information needed to make well-informed investment decisions.
What are the costs associated with tokenizing an asset?
The exact costs can vary significantly depending on the complexity of each case. Issuers should consider various expenses associated with their tokenization projects, including costs for feasibility assessments, legal implementation, documentation preparation, and ongoing operational fees.
What services are available to issuers during the tokenization process?
Sygnum provides a one-stop tokenization solution that covers the entire end-to-end value chain from minting and issuance to settlement and life-cycle management. We assist issuers from the outset by conducting thorough analyses of corporate structures and legal assessments. Our support extends through every stage, including legal implementation, token structuring, smart contract deployment, custody, distribution, and admission to the SygnEx secondary market.
What types of tokenization projects does Sygnum work on?
Sygnum offers a diverse range of investment opportunities in the tokenized asset space across three verticals: private markets, traditional securities, and art & collectibles.
Can anyone invest in the issuer’s offering?
Generally, all Sygnum clients have access to investing in all asset tokens on our platform. However, issuers can set up tailored permissions to manage investor participation.
How can investors access the issuer’s offering?
Asset tokens are made available through Sygnum’s tokenization platforms. Investors can either buy an asset token through a subscription in the primary market via our primary issuance platform – Desygnate – or a buy order on our secondary trading marketplace – SygnEx.
Where can asset tokens be bought?
Sygnum clients can buy or transfer asset tokens on the Sygnum e-banking platform via our secondary market, SygnEx.
Can token holders transfer their security tokens to a private wallet?
Transferring your security tokens to an external private wallet is not possible. Currently, only wallets held in custody by Sygnum are whitelisted.
How can asset tokens be traded?
Asset tokens can be traded on SygnEx, an organized trading facility (‘OTF’) under Article 42(a) of the FinMIA, operated by Sygnum as the OTF Operator. On SygnEx, orders can be placed in the order book or existing orders can be accepted. The OTF permits multilateral trading exclusively and does not allow executing participants’ orders to be matched against the OTF Operator’s own book or that of a company within the same group. Additionally, the OTF Operator is entitled to exercise discretion in relation to instructions on the OTF, and there is no automated matching system in place.
Sygnum’s regulated secondary market platform can be accessed via the Sygnum banking portal by clicking “Trading” under the Tokenized assets section.
What happens should Sygnum become insolvent? Who guarantees my deposits?
In the unlikely case of a Sygnum insolvency, Sygnum clients are protected by law and covered by the esisuisse bank deposit protection scheme, up to a maximum of CHF 100,000 per client. Asset tokens and all other crypto assets are held off balance sheet by Sygnum, and they are unaffected in the event of an insolvency. In this case, the tokens would be transferred to our clients’ external private wallets.
Can every Sygnum client invest in asset tokens? Does the issuer have any control over who can invest?
Generally, investments in all asset tokens on our platform are available to all Sygnum clients. However, tailored permission solutions that let issuers manage investor participation can be set up.
How will my tokens be secured and held in custody?
Client assets are protected by Sygnum’s multi-layer security architecture, which includes geo-redundant data centers meeting industry-leading security and availability requirements, with critical key material stored in Switzerland. Client assets are always held off-balance sheet and ring-fenced from Sygnum’s assets, providing insurance protection. As a fully regulated and audited Swiss bank, Sygnum ensures full compliance with AML regulations and undergoes an annual ISAE audit covering the Custody Platform.
Where can asset tokens be bought?
Asset tokens can be bought through Sygnum’s tokenization platforms. Investors can either buy asset token through a subscription in the primary market via our issuance platform Desygnate or a buy order on our secondary trading marketplace SygnEx. Asset tokens can also be freely transferred to any investor on the Sygnum banking platform