The payment industry has undergone a significant transition with the advent of cryptography and Web3 technologies. Banks have been working to develop a revolutionary payment infrastructure by incorporating Web3 models to improve the protection of account confidentiality, prevent counterfeiting, and eliminate other types of fraud. Recently, Swiss bank Cité Gestion has built a new benchmark in the private banking sector by tokenizing its own shares, implementing the Taurus technology and diving deeper into the blockchain-based payment world.
Swiss Bank Makes History In Tokenization
Tokenization is converting traditional assets, such as shares, into digital tokens that can be traded and stored on the blockchain. Cité Gestion, which has been an independent Swiss private bank since 2009, has now deployed Taurus’ technology to tokenize its shares to provide ample features and enhanced encryption to its shareholders.
According to a latest statement, this move from Cité Gestion will be the first in the private banking sector to issue shares in a tokenized form, in compliance with the ledger-based securities under Swiss law. The statement stated that Cité would go into an agreement with a prominent crypto firm Taurus to implement smart contracts in issuing and listing its tokenized shares.
Private Banks Starts Utilizing Web3 Technology
The buzz around tokenization is heating up in the world of payments, as it continues to earn the trust of financial institutions and open the door for traditional finance players to bring more investors into the exciting new world of Web3. In a recent statement, Taurus said, “We believe that digitizing private assets and securities is becoming the norm in the digital asset industry.”
The private bank explained that the process of tokenization was executed by following the standards of the Capital Markets and Technology Association (CMTA). Christophe Utelli, Deputy CEO of Cité Gestion, said, “Taurus and the application of the CMTA standards ensure that an adequate risk management framework is at the heart of the process. It was important for our bank to be among the first to take advantage of the new possibilities offered by Swiss law for the digitalization of securities by tokenizing our own shares.”
By tokenizing shares, Cité Gestion aims to pave an easier way for investors to trade shares and open multiple doors to keep track of their holdings and ownership. This step from the private bank may also bring enough liquidity and transparency for shareholders, which will eventually help them in deciding on the investment option.
Taurus gained its securities license from the Swiss Financial Market Supervisory Authority last year, and now the crypto firm aims to develop a Web3 ecosystem by providing investors and banks the power to enter into the blockchain space with tokenized securities. Tokenization of shares is not only a bold step in leading the crypto space for a good cause for Cité Gestion but also the whole banking industry. It is expected that other private banks will soon follow in the footsteps of Cité Gestion and indulge in creating their own shares to give the banking industry a Web3 shape, leading to a more efficient and transparent way of trading shares, which would benefit both investors and companies.