Swiss bank Cité Gestion is collaborating with digital assets company Taurus to tokenize its shares and expand its presence in the blockchain-based payment industry.
Cité Gestion, an independent Swiss private bank since 2009, has implemented Taurus technology to tokenize its shares to offer its shareholders additional features and enhanced encryption.
Tokenization refers to converting traditional assets, such as stocks, into digital tokens that can be traded and maintained on a blockchain network.
Swiss bank explores tokenization
According to the latest statement, this initiative by Cité Gestion will enable the bank to issue tokenized shares following Swiss law governing ledger-based securities. The announcement said that Cité would enter into a partnership with a prominent crypto company, Taurus, to implement smart contracts for issuing and listing its tokenized shares.
The private bank elucidated that the tokenization process was accomplished under the standards set forth by the Capital Markets and Technology Association (CMTA). Cité Gestion’s Deputy CEO, Christophe Utelli, stated:
“As a robust, open-source, and industry-supported framework, the CMTA standard was a natural choice for the tokenization. Taurus and the application of the CMTA standards ensure that an adequate risk management framework is at the heart of the process.”
Tokenization is a relatively new trend in the financial infrastructure world. It has rapidly earned the trust of banking institutions, paving the way for TradFi players to bring more investors into the web3 era. In a statement, Taurus stated,
“Taurus believes that digitization of private assets and securities is becoming the new standard in the digital asset industry.”
By tokenizing its shares, Cité Gestion intends to make it simpler for investors to buy and sell shares and provide multiple avenues for tracking their ownership. Furthermore, the private bank’s move may increase liquidity and transparency for shareholders when deciding on an investment option.
Last year Taurus obtained a securities license from the Swiss Financial Market Supervisory Authority, and the crypto firm is now providing tokenized securities to enable investors and banks to enter the blockchain space. The tokenization of shares represents not only a positive development for Cité Gestion but also for the entire financial services sector as a whole.