Tokenization

The FalconX Credit Vault is deployed on the Ethereum blockchain, the leading blockchain for institutional-grade digital assets and tokenized financial products.

You may request withdrawal of capital during any loan cycle, subject to a dynamic call mechanism:

• If the forthcoming interest rate declines by more than 100bps: you may redeem within an accelerated 3-day window following the end of the current cycle;
• If the forthcoming rate declines by 100bps or less, remains unchanged, or increases, funds are released at end of immediately succeeding loan cycle.

You can invest USDC in the FalconX Credit Vault at any time via the Sygnum eBanking once onboarding is complete to start earning interest at the current cycle interest rate.

The interest rate is determined for each monthly lending cycle and communicated approximately seven days before the start of the next cycle. Once a cycle begins, the rate remains fixed for its duration. Interest accrues continuously on the investor’s position throughout the cycle and is reflected in the value of the position rather than being distributed as cash. Returns are calculated based on the capital deployed during the cycle, while the published rate is expressed on an annualized basis. For information on the withdrawal process, please refer to the “How do withdrawals work?”.

Existing Sygnum clients can invest in the FalconX Credit Vault directly via the Sygnum eBanking platform. Prospective clients must first complete the Sygnum onboarding Internal process, including standard Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, before they can invest. The minimum initial investment is USDC 5,000.

In Switzerland, the FalconX Credit Vault is available exclusively to qualified investors, as defined in art. 10 para. 3 and art. 10 para. 3ter CISA, at the exclusion of qualified investors with an opting-out pursuant to art. 5 para. 1 FinSA and without any portfolio management or advisory relationship with a financial intermediary pursuant to art. 10 para. 3ter CISA.

Stablecoins are designed for price stability and settlement but typically do not generate yield. FILQ is a digitally native liquidity fund that provides exposure to yield from regulated, highly rated government securities while remaining usable across on-chain workflows. It combines the usability of tokenized cash with the return profile of a money market fund, helping institutions improve cash efficiency without giving up liquidity.

FILQ tokens are issued using the ERC-20 standard on Ethereum blockchain. The fund operates a permissioned model, where only approved wallets can transact. Access and ownership records are maintained by a transfer agent, and transactions are supported by smart contract-based controls. The structure combines blockchain-based settlement with established fund governance and operational oversight. 

Yield is generated from investments in regulated, highly rated government securities, subject to market conditions. The fund calculates net asset value (NAV) daily at 22:00 CET time and publishes it shortly after. For accumulating token classes, yield accrues daily and compounds into the NAV. For distributing token classes, yield accrues daily and is paid out as dividends on a monthly basis, with a constant NAV structure of one token to one USD.

You can subscribe and redeem FILQ tokens 24/7 in the Sygnum eBanking once onboarding is complete. During market hours (02:00 to 22:00 CET time, Monday to Friday), settlement is typically near-instant. Outside market hours, redemptions are supported via liquidity facilities, and transactions may be queued or subject to fees depending on conditions.

Potential investors need to successfully complete onboarding with Sygnum, including standard Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. The minimum initial investment is USD 100,000.

In Switzerland, FILQ is available exclusively to qualified investors, as defined in art. 10 para. 3 and art. 10 para. 3^ter CISA, at the exclusion of qualified investors with an opting-out pursuant to art. 5 para. 1 FinSA and without any portfolio management or advisory relationship with a financial intermediary pursuant to art. 10 para. 3^ter CISA. Accordingly, the fund has not been and will not be registered with FINMA and no representative or paying agent have been or will be appointed in Switzerland.

FILQ tokens are issued using the ERC-20 standard on Ethereum blockchain. The fund operates a permissioned model, where only approved wallets can transact. Access and ownership records are maintained by a transfer agent, and transactions are supported by smart contract-based controls. The structure combines blockchain-based settlement with established fund governance and operational oversight. 

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.

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. 

Transferring your security tokens to an external private wallet is not possible. Currently, only wallets held in custody by Sygnum are whitelisted. 

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.

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.

All client crypto assets are held off balance sheet by Sygnum and are bankruptcy remote and are unaffected in the event of an insolvency. Fiat deposits are protected by law and covered by the esisuisse bank deposit protection scheme, up to a maximum of CHF 100,000 per client.  

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. 

Sygnum offers a diverse range of investment opportunities in the tokenized asset space across three verticals: private markets, traditional securities, and art & collectibles.

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. 

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. 

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. 

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. 

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. 

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. 

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.