Sygnum Bank: Large scale asset tokenisation
- POSTED ON
- 30. November 2020
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Sygnum Bank announces the launch of a platform on which tokenised assets can be traded. Why tokenisation can help assets such as real estate and art become more liquid.
Swiss Sygnum Bank will offer tokenised assets that meet institutional requirements. Sygnum claims to be the first digital asset bank in the world to be licensed to offer Financial Peak digital investment products to institutional investors.
In a press release issued on Thursday 26 November, Sygnum announced the launch of Desygnate. Desygnate is a primary market instrument complemented by the secondary market platform SygnEx. Both platforms will allow investors to access a wide range of tokenised assets.
From real estate to art
Sygnum Bank AG therefore focuses on investment products that are comparatively illiquid due to their nature and are therefore only available to a small group of investors. Large investments, such as in real estate, can be broken down by tokenisation and thus also made available to less well-capitalised investors. This allows investors to trade digital investment products in the real estate, venture capital, mid-cap and art categories. According to the company, the market that can be opened up in this way is worth trillions.
But block-chain-based tokenisation models have other advantages besides the denomination into small tranches. For example, billing is no longer dependent on a central location and thus a single point of failure, but is instantaneous, decentralised and can be carried out at any time of day or night. Decentralised clearing can therefore only be beneficial to the liquidity of markets. The problem with digital assets has so far been their embedding in traditional finance structures. With the launch of the two platforms, Sygnum has come a step closer to establishing itself in the traditional financial sector.
Venture capital in particular is considered an asset class that could benefit from tokenisation. After all, such investments were previously closed to „small“ investors due to their prohibitively high volumes. On the other hand, start-ups naturally benefit from a wider range of investors and can thus potentially attract more capital.
With Desygnate and SygnEx, we are launching a block-chain-driven business solution that opens up a world of new business opportunities for capital market participants.
In addition to Bitcoin, block chain technology has also reached other areas of finance. Recently, BTC-ECHO reported on the first tokenisation of a public company. We are talking about WeStyle Aesthetics AG, which used Agora and iVE.one to bring registered shares to the block chain.
In our Academy course „Blockchain for Beginners“ we give an introduction to the world of decentralised technologies and explain why tokenisation is a promising field.