Strategic partnership for a trusted digital asset ecosystem

Swisscom Sygnum Custodigit
Swisscom Sygnum Custodigit
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Deutsche Börse, Swisscom and Sygnum enter into strategic partnership to build a trusted digital asset ecosystem. Core elements of new ecosystem to provide issuance, custody, access to liquidity and banking services leveraging Distributed Ledger Technology.

The partnership is strengthened through cross-shareholdings in key components of the ecosystem.

When Giants meet DLTs

Deutsche Börse Group, one of the world’s largest market infrastructure providers, Swisscom, the leading Swiss Information and Communication Technology (ICT) company and one of its leading IT service providers, and Sygnum, a Swiss and Singapore-based financial technology company in the regulatory process to obtain a Swiss banking and securities dealer license, have entered into a strategic partnership.

The aim of this cooperation is to jointly build out and grow a trusted and regulatory compliant financial market infrastructure for digital assets.

The tokenization of assets, the next major phase of asset digitization, has the potential to reshape global financial markets. In order to fully unfold its potential, the emerging tokenized economy needs a trusted, comprehensive and regulatory compliant ecosystem.

This integrated ecosystem around digital assets, developed by strong and experienced partners, will enable investors to tap into these new asset classes and accommodate to future client needs. The core elements of the solution will include issuance, custody, access to liquidity, and banking services – all leveraging Distributed-Ledger-Technology (DLT) in a regulatory compliant environment.

The strategic partners will jointly grow and enhance these foundational elements of the digital asset ecosystem in alignment with the requirements of market participants.

Partnership for an integrated digital assets ecosystem – trust, compliance, innovation

The strategic partnership includes an investment by Deutsche Börse in Custodigit AG. The company was founded in 2018 as a joint venture by Swisscom and Sygnum. Custodigit AG provides a technical solution for the custody of digital assets for regulated financial services institutions.

The integrated platform allows bank customers to manage the entire life cycle of their digital assets. As one of the main shareholders, Deutsche Börse will actively support the growth journey of Custodigit AG and its service offering.

Building a strong ecosystem

Furthermore, Deutsche Börse and Sygnum will become shareholders of Daura AG. The company has developed a platform that uses Distributed Ledger Technologies to issue, securely transfer and register Swiss SME-shares, enabling non-listed companies to access the capital markets.

As investors, Deutsche Börse and Sygnum will be actively involved in the companies’ future development.

Moreover, Deutsche Börse and Sygnum are currently conceptualizing the establishment of a further building block of the ecosystem – a listing and trading venue for digital assets in the Swiss market. Access to liquidity via an open, regulatory compliant marketplace is considered a critical element for building a scalable digital assets ecosystem

Following obtaining a Swiss banking and securities dealer license from the Swiss regulator FINMA, Sygnum will provide comprehensive banking services such as custody, deposits, credit & lending, capital issuance via tokenization, brokerage and asset management within the digital asset ecosystem.

The ecosystem established by the partners is based on Decentralized Ledger Infrastructure developed and operated by Swisscom, meeting security requirements of financial services institutions and allowing for scalability.

The first products and services provided by the new ecosystem for digital assets are expected to be launched in the course of 2019.

The transaction is subject to merger control clearance.

Why Swisscom and Sygnum aren’t working with local SIX exchange

Interview at CNN Money Switzerland: Mathias Imbach, founding partner of Sygnum (right), and Roger Wüthrich-Hasenböhler, chief digital officer of Swisscom (left)

The actors

Daura enables easy access to the OTC capital market for Swiss SMEs and startups.

Through tokenization of shares and participation certificates, Swiss companies limited by shares can digitally and automatically keep their share register on a ledger and easily reach global investors registered on daura.

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CUSTODIGIT AG, a joint-venture between Swisscom and Sygnum, develops an institutional investor-grade custody solution for secure access to and storage of digital assets targeting regulated financial institutions.

Sygnum leverages CUSTODIGIT’s custody solution for its services applying a proprietary AML Risk Framework that builds on existing regulatory concepts and is enhanced by distributed ledger technology-based information to ensure compliance with today’s regulations.

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Sygnum is a Swiss Singapore-based financial technology company in the regulatory process to obtain a Swiss banking license. Sygnum empowers financial services for the digital asset economy. It develops an integrated solution to securely issue, store, trade and manage digital assets.

The company was founded by an experienced, interdisciplinary team of experts and is backed by a distinguished group of individuals and institutions. Sygnum is rooted in two of the world’s leading financial hubs – Singapore and Switzerland.

Image result for deutsche borse logo

Deutsche Börse Group is one of the largest exchange organisations worldwide. It organises markets characterised by integrity, transparency and safety for investors who invest capital and for companies that raise capital – markets on which professional traders buy and sell equities, derivatives and other financial instruments according to clear rules and under strict supervision.

Deutsche Börse Group, with its services and systems, ensures the functioning of these markets and a level playing field for all participants – worldwide.

Swisscom

Swisscom, Switzerland’s leading ICT company is headquartered in Ittigen, Berne. About 20,000 employees generated sales of CHF 11.7 billion in 2018. Swisscom supports regulated financial institutions in digitization. One of the central fields are digital asset services.

Have a look at the Full Press Release and additional information here below:

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