The news was revealed in a press release by Andriotto Financial Services on Wednesday, 29th January. The company is considered to be the first to get approval from the Swiss authorities to tokenize its shares on a Blockchain during its IPO (Initial Public Offering). The smart contracts will be provided by Zug based firm EURO DAXX – the European Digital Assets Exchange.
The shares will directly be represented as tokens on the Ethereum Blockchain meaning the ownership and transfer of tokens are considered the same as ownership and transfer of actual shares. This is a huge step as it recognizes digital tokens in a similar light to legacy ownership of assets via paper contracts.
Issuing tokens also means that you do not necessarily need middlemen to facilitate ownership and transfer of assets, this allows companies to launch IPOs and get access to the secondary market all without any intermediaries like investment banks and brokers.
“A company’s articles of incorporation natively on the blockchain may represent the first concrete step toward a huge revolution for the way companies access to the capital markets (and crowdfunding).”
Ethereum and Tezos are competing to be the leading platforms for the tokenization of real-world assets, although is the standard for issuing tokens many experts in the industry believe that Tezos is more suited for tokenization due to its already existing proof of stake infrastructure.
Switzerland has made news several times in the Cryptosphere due to its friendly regulations and open-mindedness towards technology. The country is known for its Crypto Valley in Zug, it also made news recently for listing Cryptocurrencies like Bitcoin and Litecoin ETFs on its SIX stock exchange. Even one of the biggest banks in Switzerland has entered the Crypto space by providing custody services.
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