Swiss and Singapore-based financial technology Sygnum has announced a strategic partnership with Deutsche Börse Group, a global market infrastructure provider, and Swisscom, an Information and Communication Technology (ICT) company.
Together, the companies will build and maintain a regulatory compliant financial market infrastructure for digital assets. The goal is to instil public awareness and participation in the idea that traditional assets such as financial instruments, industrial goods or real estate can, and should, be tokenized.
After obtaining a Swiss banking and securities dealer license from the Swiss regulator FINMA as well as Singapore’s MAS, Sygnum will provide comprehensive banking services such as custody, deposits, credit and lending, capital issuance, brokerage and asset management within a digital asset ecosystem.
By tokenizing traditional assets, a digital representative will be created, allowing people to have smart features and ownership over the underlying value of digital assets.
The three parties will have a cross-shareholdings in key components of the ecosystem.
During the Sygnum’s official announcement on Monday, March 11, it was revealed that the infrastructure will have products such as issuance, custody, access to liquidity, and banking services, all leveraging a comprehensive and regulatory compliant Distributed Ledger Technology.
“We believe that Sygnum’s use of Distributed Ledger Technologies, combined with Deutsche Börse and Swisscom’s experience in building and operating financial services infrastructure, is a winning formula. This partnership will explore the potential of the digital asset for institutional market participants – and in the process, it will spearhead digital assets’ transition,” said Mathias Imbach, Founding Partner & CEO Singapore of Sygnum.
Imbach added that the establishment of a trusted digital asset ecosystem is also a strong example of Switzerland and Singapore’s role in global financial markets innovation.
“It is also why we decided to focus only on both markets, as we believe that both markets are ready for such ecosystem,” he added.
This integrated ecosystem of digital assets tokenization is said to allow investors to tap into new asset classes and accommodate future client needs.
The strategic partnership included an investment by Deutsche Börse into Custodigit AG, which was founded in 2018 as a joint venture by Swisscom and Sygnum. Custodigit AG provides a technical solution for the custody of digital assets for regulated financial services institutions which allows bank customers to manage the entire life cycle of their digital assets.
Deutsche Börse and Sygnum will also become shareholders of daura AG, a platform that uses Distributed Ledger Technologies to issue, transfer, and register Swiss SME-shares, enabling non-listed companies to access the capital markets.
Right now, both Deutsche Börse and Sygnum are in the middle of conceptualising a building block of the ecosystem which will be an open and regulatory compliant listing and trading venue for digital assets in the Swiss market.
The ecosystem established by the partners is based on Decentralized Ledger Infrastructure developed and operated by Swisscom.
Deutsche Börse Group organises markets for investors who invest capital and for companies that raise capital on which professional traders buy and sell equities, derivatives, and other financial instruments.
Swisscom is a Switzerland’s ICT company is headquartered in Ittigen, Berne that supports regulated financial institutions in digitisation.
Sygnum is now in the regulatory process to obtain a Swiss banking license with its integrated solution to securely issue, store, trade, and manage digital assets. The first products and services provided by the new ecosystem are expected to be launched within this year.
Image Credit: Sygnum