The adoption of blockchain technology is ubiquitous, so traditional banks are also delving into this sector. One of them is a private bank from Switzerland – Cité Gestion. In collaboration with the technology company, Taurus intends to issue tokens corresponding to the bank’s shares.
Cité Gestion focuses on innovation
The Swiss bank Cité Gestion was founded in 2009 and has entered into a partnership with the technology company Taurus. This is to provide him with solutions based on blockchain technology. Then the result of this collaboration is the tokenization of shares belonging to a financial institution.
This will mark the first time in history that a private bank will issue tokens that reflect its shares as securities with bookkeeping under Swiss law. In addition, the bank intends to implement smart contracts in its technological structures to process internal activities.
Tokenization, which is a form of digitization of various types of assets, is becoming an increasingly popular trend among financial institutions. Among other things, because it allows entities from traditional financial markets to attract more investors using blockchain technology.
Taurus believes that the digitization of private assets and securities is becoming the new standard in the digital asset industry
said the technology company in a statement.
Some time ago, another investment management company – Hamilton Lane (HLNE) – announced that it is tokenizing its three funds as part of a partnership with Securitize. The latter specializes in digital asset securities. This partnership aims to make private market investing available to a wider range of investors. This information came shortly after a similar move by investment giant KKR. In September 2022, the company announced plans to tokenize its strategic healthcare fund. The whole thing is to be carried out in collaboration with Avalanche.
But let’s go back to Cité Gestion. Tokenization of their shares will be performed in accordance with the standards set by the Capital Markets and Technology Association (CMTA). It is a non-profit organization based in Geneva. As the bank said in its statement:
Taurus and the application of CMTA standards ensure that the process is supported by an appropriate risk management framework
– says Christophe Utelli, Deputy Director General of Cité Gestion.
Tokens will be minted using CMTAT, an open source smart contract created by CMTA. It is dedicated to the tokenization of securities. The entire process was conducted on the Ethereum blockchain, according to the company.
It was important for our bank to be one of the first to take advantage of the new opportunities offered by Swiss law in the digitalization of securities by tokenizing our own shares
adds Utelli.
The Taurus company was founded in April 2018. Last year, it received the appropriate securities license from the Swiss Financial Market Authority, thanks to which the company enables investors and banks to trade in many assets, including tokenized securities.
Taurus has already participated in the tokenization of 15 companies. This includes shares, private loans and structured products from companies in Switzerland and Europe.
