Thanks to a partnership with Taurus, the Swiss private bank Cité Gestion has tokenized its shares on the Ethereum (ETH) blockchain. Let’s take a look at this world premiere.
The Cité Gestion bank tokenises its capital
This is new 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 taken on the expertise of Taurus, a Swiss company also specialized in services related to cryptocurrencies.
Taurus has already done it has accompanied fifteen companies in this process of tokenization of their capitalas Sébastien Dessimoz, co-founder of the company, explains:
“We are pleased with the partnership with Cité Gestion for the tokenization of their shares. We participated in the tokenization of 15 companies last year, covering a wide range of assets. Nearly half come from regulated institutions or bodies. »
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The Ethereum blockchain in the spotlight
While banks are increasingly getting into cryptocurrency-related technologies, this is often done over private networks. But in this case, this happens on Ethereum (ETH). For this, Taurus uses a smart contract model established by Capital Markets and Technology Association (CMTA), a Swiss association working to develop blockchain technologies in financial markets.
The CMTA developed the open source CMTAT standard, which allows for the creation of ERC-20 compliant tokens and in accordance with Swiss law.
At a time when tokenization is starting to find a place in different financial fields, Christophe Utelli, Deputy CEO of Cité Gestion, believes that his company must play a pioneering role:
“It was important for our bank to be among the first to take advantage of the new possibilities offered by Swiss law for the digitization of securities by tokenizing our shares. The CMTA standard was a natural fit for tokenization: open source, vetted, and industry recognized. »
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. For its part, RealT has demonstrated over several years that this same principle works for real estate. As this practice grows in popularity, stock tokenization could become a norm in finance.
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Source: Taurus
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I timidly discovered the world of blockchain in late 2018 during my quest for financial freedom. Initially invested moderately, only two years later I took the bet of betting everything on the movement that was then taking shape. I then dedicate 2021 to training better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I know, I want to share with you.
Vincenzo Mayor
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