The Swiss financial industry has successfully traded and settled tokenized investment products
, 2022-12-13 00:05:41,
Credit Suisse, Pictet and Vontobel have conducted a proof of concept to issue tokenized investment products recorded on a public blockchain and traded on BX Swiss, the Swiss regulated stock exchange
The three processes of the proof of concept – issuance, trading and settlement – took place within hours, whereas in a traditional financial environment they take days
The Capital Markets and Technology Association’s (CMTA) token standard and Taurus’ tokenization technology have been used to issue tokenized investment products
Trades in tokenized securities are settled in fiat currency – the Swiss franc – through a smart contract and targens’ payment bridge DLT2Pay
The financial industry is taking advantage of the blockchain technology to increase security and efficiency and reduce complexity
GENEVA, Dec. 13, 2022 /PRNewswire/ — For the first time, key players in the Swiss financial industry successfully developed and tested a novel settlement mechanism for tokenized investment products on a public blockchain testnet infrastructure. A smart contract, developed by the Capital Markets and Technology Association (the CMTA), allows for streamlined processes, reduces complexity, raises security, and eliminates counterparty risks from trades. The CMTA’s proof of concept marks a milestone for the Swiss financial industry.
The proof of concept involves:
the issuance of tokenized investment products recorded on an Ethereum test…
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