The Zurich-based Sygnum Bank has developed a solution for the tokenization of assets which can then be traded via blockchain infrastructures. This allows investors to invest in real estate assets, for example, as well as in art and collectible objects. Investors can additionally acquire fractional shares of assets, which ensures that a wider audience has access to investment opportunities.
The new law regulating Distributed Ledger Technology (DLT) took effect in Switzerland on February 1, 2021. Alongside Fine Wine Capital AG, which is based in Steinhausen in the canton of Zug, Sygnum Bank has created the first asset tokens issued in line with the provisions of the new legislation. Specifically, the partners have tokenized a selection of premium wines, as detailed in a press release. These will now be offered as investment opportunities to Sygnum’s client base.
In the press release, Sygnum praises the new DLT law for creating the foundations for the next generation of securities on the blockchain. It additionally provides a stable legislative framework to exploit the potential offered by asset tokenization. The change in the law ensures that “asset tokenization is now a viable alternative to traditional securitization from a legal point of view”, according to Gino Wirthensohn, Head of RegTech at Sygnum.
Alexandre Challand, co-founder of Fine Wine, also welcomed the new law. “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”, he explains in the press release, before adding: “This provides them the opportunity to hold, trade or request a physical settlement of this unique asset in an efficient manner”.