Sygnum Bank tokenized vintage wines on the Desygnate platform

Sygnum Bank tokenized vintage wines on the Desygnate platform

From February 1, Switzerland is allowed to issue tokenized assets. Sygnum Bank was the first to tokenize “investment vintage wines” by issuing tokens on the Desygnate platform.

Swiss bank Sygnum has tokenized the first set of assets under the country’s new law regarding the use of distributed ledger technology (DLT). Sygnum Bank has teamed up with Fine Wine Capital AG to tokenize a number of “investment vintage wines” and issued tokens representing alcoholic assets on the Sygnum Desygnate platform.

The release of assets was made possible by the entry into force on February 1 of the first stage of a new law allowing the registration and transfer of tokenized assets. The law will open up access to luxury goods, such as diamonds and fine wines, to more investors by increasing the availability and liquidity of such assets.

“The tokenization of wine assets allows us to expand our base of private investors-collectors at the expense of new private and institutional investors. This gives them the ability to effectively store, trade, or request a physical settlement on this unique asset, ” said Fine Wine co-founder Alexandre Challand.

Records of ownership of tokenized assets issued on Desygnate are entered in the blockchain registry, which is legally binding. Property rights can be transferred to other persons exclusively under the DLT system in accordance with the new Swiss law. Gino Wirthensohn, Head of Regulatory Technology at Sygnum, said:

“The legal provisions that have come into force ensure that asset tokenization has become a viable alternative to traditional securitization.”

The new law, first proposed by the Swiss Federal Council in 2019, went through a rigorous legislative process before being approved by both the lower and upper houses of parliament last summer. The second stage of the law, which concerns the modernization of infrastructure in the financial markets, will come into force in early August.

Recall that in December, Sygnum tokenized its shares using the Ethereum blockchain and the Desygnate platform for tokenizing assets. The bank also announced preparations for the upcoming IPO.