The Swiss financial industry has successfully traded and settled tokenized investment products
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 blockchain,
- the trading of these products in Swiss francs on a regulated Swiss securities exchange, and
- the settlement of trades through a smart contract developed by the CMTA.
"We are very proud to have developed this groundbreaking mechanism with numerous partners from the financial and technology industries," says Jacques Iffland, Chairman of the CMTA and Capital Markets Partner at Lenz & Staehelin. "It will enable the industry to increase efficiency, simplify cross-border settlement and improve the quality of service. And customers will benefit from the efficiency gains."
Discover more about this concept on CMTA's website.