The Swiss Blockchain Federation has published guidelines for issuers of digital equity and related tokens.
The manual particularly helps smaller and mid-sized companies to leverage the issuance and trading of equity on the blockchain. The guidelines could further provide valuable insights to foreign issuers that consider creating security tokens under Swiss law. The document focuses on the digitization of well-established financial instruments, namely shares, which unlike other token types provide investors by law with a well-known bundle of rights.
The issuance of equity and other financial instruments in the form of digital tokens is seen as one of the most promising use cases for the blockchain technology, according to the official press release.
Even smaller issuers are now able to digitize their equity, participation certificates or bonds in in full compliance with regulatory requirements. They become digitally transferrable within seconds, which in the medium run could enable the development of a secondary markets for all shares that are currently not publicly traded.
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