Today, Sygnum Bank and Fine Wine Capital AG have tokenized a series of premium investible wines. Thus, developing the first asset tokens issued per the new Swiss DLT law, whose first provisions come into effect. Sygnum has developed a fully compliant platform that promotes the trading of tokenized securities. This is Sygnum’s principal asset tokenization in the art and collectibles category, according to a Feb 1 press release. By forming lawfully obligatory, simply trackable digital assets ownership, the measures may precede this up and coming space.
Moreover, the move is in line with the first phase of the new law that comes into force today. Sygnum and Free Wine Capital are free to register and carry their tokenized assets without worrying about any legal consequences. The legislation will introduce luxury goods like diamonds and fine wine to a more significant investment pool. It will enhance accessibility and liquidity of such assets employing blockchain technology.
Sygnum’s Asset Tokenization comes under Swiss Law
Further, the assets tokenized on Sygnum’s Desygnate platform are declared under the incoming legal framework. It will gain recognition under a different category of ledger-based securities. Based on the latest legal provisions, Sygnum has produced a framework that connects financial and real assets ownership to a DLT-based asset token.
Moreover, with the recent move, securities in asset tokens can be issued and traded with convenience and safety. All associated legitimate rights and duties will be automatically assigned to the new investor and entirely approved by the Swiss legal system. High-growth, attractive real asset investments such as premium wine, fine art, and diamonds are often illiquid and hard-to-access. Sygnum’s bank-grade tokenization solution allows issuers to make their investment opportunities more broadly available, affordable through fractional ownership, and quickly tradeable.
Fine Wine Capital’s Co-Founder, Alexandre Challand, says that the tokenization of wine assets allows the firm to expand the private collector investor base to new private and institutional investors. Moreover, it attracts investors interested in fractional ownership in distinctive real assets. Alexandre further continues to offer them the opportunity to own, trade, or request a unique asset’s physical settlement.
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