The new legal provisions on distributed ledger technology (DLT) came into effect in Switzerland on February 1. After implementation, two local companies announced the issuance of the first tokenized assets under the new law.
Customers of Sygnum Bank can use the “Fine Wine” token
According to the announcement, Swiss digital asset bank Sygnum and Fine Wine Capital AG launched collectible premium wine-backed tokens, which became the first tokens under the new blockchain rules.
Assets marked on the Sygnum platform Desygnate will be classified in the law as a new category of ledger-based securities. According to the Digital Asset Bank, Sygnum customers can use the “fine wine” token in the “art and collectibles” category.
The Swiss Federal Law for the Adaptation of Federal Laws to the Development of Distributed Ledger Technology allows companies to develop a framework that links financial and physical asset ownership with DLT-based asset tokens.
Alexandre Challand, co-founder of Fine Wine Capital, provided more details on how the new rules will benefit investors:
The tokenization of wine assets allows us to expand our private collector investor base to new private and institutional investors interested in partial ownership of unique real assets. This provides them with the opportunity to hold, trade or require physical settlement of this unique asset in an efficient manner.
In addition, Gino Wirthensohn, head of regtech at Sygnum Bank, believes that the new legal provisions bring “from a legal perspective, a viable alternative to traditional securitization.”
The latest case of tokenized assets
Asset tokenization maintains its growth trend in various markets. Recently, Coreledger announced that they will cooperate with Abakus to establish a “digital barter economy” in Argentina.
The project includes enabling farmers to tokenize their agricultural assets in order to seek a hedge against rising inflation. In this case, Argentine farmers can redeem their tokenized ownership and trade with any other assets through the Akabus P2P platform.
In Russia, one of the world’s largest palladium producers, Nornickel revealed in December 2020 that they have begun the first phase of issuing digital coins involving metal contracts.
The Russian mining giant pointed out that its first phase token will be linked to the mining and exploration of palladium, cobalt, and copper.
What do you think of this tokenization of Swiss premium investable wines? Let us know in the comments section below.
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