Sygnum, a digital asset finance firm with a Swiss banking license, has launched what it says is a blockchain-based alternative to listing shares on a stock exchange.
On Thursday, the company announced an “end-to-end tokenization solution,” comprising of both a primary market issuance platform called Desygnate, and SygnEx, a secondary market trading venue.
The solution will provide issuers a way to raise capital, grow liquidity and transfer ownership and manage corporate actions, Sygnum said. It will also bring investors access to tokenized assets, with targeted markets being venture capital, “mid cap” companies, real estate and art and collectibles.
With distributed-ledger technology underlying the solution, Sygnum claims instant settlement around the clock and seven days a week, as well as reduced counterparty risks with the platform powered by its own Swiss franc-linked stablecoin, Digital CHF (DCHF).
“With Desygnate and SygnEx, we bring a blockchain-powered business solution to market which opens up a world of new opportunities for capital market participants to do business”, said Mathias Imbach, CEO designate of Sygnum Group, in the announcement.
A number of companies are already using, or will soon start to use, the tokenization solution, according to Sygnum. It lists asset manager Azimut Group, property investment firm ImmoZins, real-estate token provider CrowdliToken, electric vehicle company BAK Motors and wine investment firm Fine Wine Capital AG.
As an alternative to traditional capital markets, Sygnum said it can help companies raise funding while avoiding high costs and extensive listing requirements.
“Switzerland’s estimated 600,000 SMEs, and the 45,000 new companies founded each year, can now attract a broader network of investors and raise capital by issuing security tokens, which can be securely traded on SygnEx,” the company said..