Thanks to a partnership with Taurus, Swiss private bank Cité Gestion has tokenized its shares on the Ethereum (ETH) blockchain. Let’s take a look at this world premiere.
Cité Gestion bank symbolizes its capital
This is a first in traditional finance: Swiss private bank Cité Gestion has tokenized its shares on the blockchain. Founded in 2009 and based in Geneva, this bank has hired the skills of Taurus, a Swiss company that also specializes in services related to cryptocurrencies.
Taurus already has it guided fifteen companies in this process of tokenizing their capitalas Sébastien Dessimoz, co-founder of the company, explains:
“We are pleased to partner with Cité Gestion for the tokenization of their shares. We participated in the tokenization of 15 companies last year, with a wide range of assets. Almost half of this comes from regulated institutions or bodies. »
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The Ethereum blockchain in the spotlight
While banks are increasingly getting into cryptocurrency-related technologies, it often happens on private networks. But in this case, this is happening on Ethereum (ETH). For this, Taurus uses a smart contract model prepared by the Capital Markets and Technology Association (CMTA), a Swiss association working to develop blockchain technologies in the financial markets.
The CMTA developed the CMTAT standard which is available in open source, which can be used to create ERC-20 compliant tokens and in accordance with Swiss law.
At a time when tokenization is beginning to take hold in various financial areas, Christophe Utelli, deputy CEO of Cité Gestion, believes his company had to play a pioneering role:
“It was important for our bank to be one of the first to take advantage of the new opportunities that Swiss law offers for the digitization of securities by symbolizing our own shares. The CMTA standard was a perfect fit for tokenization: open source, audited and recognized by the industry. »
Asset tokenization is on the rise. Last year, for example, the Pau basketball club put part of its capital up for sale in this way. In turn, RealT has proven for several years that this same principle works for real estate. As this practice becomes more popular, share tokenization may well become a norm in the financial world.
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