Switzerland’s Tokenized Securities Law Ushers In New Era For Digital Assets

A new regulation in Switzerland began on Monday. Allowing tokenized securities commerce on a blockchain with the identical authorized standing as conventional property.

Swiss lawmakers decided against creating a new regime. Instead adapting legislation to graft specific features of distributed ledger technology onto the existing legal framework. The DLT amendments acknowledge tokenized securities as a brand new class of asset. Whose authorized possession rights are routinely transferred through the blockchain to every new investor. 

This new law further cements Switzerland as one of the most advanced jurisdictions in the world for crypto. Only Singapore being at a similar level.

“Previously, you had uncertificated rights there that had to be assigned, and a lot of smart people were looking at how that could be done on-chain”. Said Alexander Vogel, a partner at Swiss law firm Meyerlustenberger Lachenal (MLL). “With these new registered rights, it’s clear that you have legal certainty. If they are properly transferred on a blockchain, the new owner who holds them in his or her wallet is definitely the owner of these rights.”

SEBA Issues Series B Equity Shares As ERC-20 Tokens

Meanwhile, SEBA is issuing its Series B equity shares as Ethereum ERC-20 tokens. The firm said in a statement will allow for “seamless connectivity for trading and liquidity on future internationally recognized digital liquidity venues.”

Matthew Alexander, head of digital corporate finance and asset tokenization at SEBA Bank. Spoke about the new legal wrapper for tokenized assets saying, “It’s a genuine blockchain-based digital twin of a traditional security. Switzerland’s strategy is to provide a bridge into this new digital economy. The transition from traditional fiat ways of banking and security assurance.”

Alexander also noted that any issuer in Switzerland could take advantage of the new laws. Including Swiss banking major UBS, which issues its primary securities on SIX, the country’s national stock exchange.

There is also belief that this new law will fuel the SIX digital exchange, SDX, to get its services up and running. “So SDX, the digital twin of the Swiss stock exchange, is still under construction and has been for a long time,” Alexander noted. “But it will then host these digital twins and that whole transition is coming.”

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