Swiss Blockchain Federation shows the path to capital markets of the future
The issuance of equity and other financial instruments in the form of digital tokens is seen as one of the most promising use cases for the blockchain technology. Even smaller issuers are now able to digitize their equity, participation certificates or bonds in in full compliance with regulatory requirements. They become digitally transferrable within seconds, which in the medium run could enable the development of a secondary markets for all shares that are currently not publicly traded.
The issuance of equity and other financial instruments in the form of digital tokens is seen as one of the most promising use cases for the blockchain technology. Even smaller issuers are now able to digitize their equity, participation certificates or bonds in in full compliance with regulatory requirements. They become digitally transferrable within seconds, which in the medium run could enable the development of a secondary markets for all shares that are currently not publicly traded.
The Swiss Blockchain Federation is convinced that the capital markets of the future will be digitized and that Switzerland is well-positioned to assume a pioneering and leadership role in this field. To make sure that not only large corporations with the necessary expertise are able to benefit, an expert group has developed these simple and concise guidelines, laying out the most important steps and recommendations around the issuance of equity tokens. The guidelines could further provide valuable insights to foreign issuers that consider creating security tokens under Swiss law.
The document focuses on the digitization of well-established financial instruments, namely shares, which unlike other token types provide investors by law with a well-known bundle of rights. Relying on established instruments enables a timely implementation and helps avoiding cumbersome legal evaluation and approval procedures. Moreover, concrete recommendations concerning transparency and governance are made, which are both essential for the development of a healthy capital market.
The following experts have contributed to the “Guidelines for Issuers of Equity and Related Tokens”: Khalil Aouak (Falcon Private Bank), Diego Benz (Drakkensberg), Hans Kuhn (DALAW), Luzius Meisser (Bitcoin Association Switzerland), Daniel Rutishauser (inacta), Peter Schnürer (daura), Christopher Schütz (SDX), Alexander Thoma (Alethena), Claudio Tognella (daura), Rolf H. Weber (University of Zurich).
