Sygnum Bank, a Swiss-based digital asset banking and securities dealer, today announced the launch of its digital CHF token (DCHF). This CHF-pegged settlement token is the first to be issued by a regulated Swiss bank with a full digital asset banking suite.
- Sygnum’s DCHF is a key component for leveraging the advantages of DLT-based financial infrastructure, including immediate delivery vs payment (T=0) and no counterparty risk, thereby transferring value more efficiently
- The settlement token framework and technology developed for Sygnum’s DCHF can be replicated with other major national currencies
For every settlement token minted in its customer accounts, Sygnum, a regulated Swiss bank, will hold the equivalent amount of CHF as collateral in the Swiss National Bank (SNB). As a Bank, Sygnum and its products and services are regularly audited.
Settlement tokens, also called stablecoins, are digital assets that can be pegged against any national currency. The Sygnum DCHF acts as a bridge between other digital assets and fiat currencies, increasing transaction ease and efficiency.
“We have focused on the development of the Sygnum DCHF as it is essential for bringing the digital asset economy to life. It creates significant operational efficiencies, and at the same time fosters the development of new business models. Soon, the Sygnum DCHF will also be leveraged by other market participants to facilitate immediate settlement of asset transfers.”
– Mathias Imbach, Sygnum Co-Founder and CEO Singapore
Sygnum’s DLT-based DCHF can be transferred in real-time, resulting in almost immediate settlement of transactions and eliminating the need for intermediaries.
Employing DCHF in these instances reduces complexity, costs and time, and also alleviates counterparty risk. For institutional clients, the Sygnum DCHF is a central component of the digital asset ecosystem that enables the full integration of asset tokens into banking infrastructure.
“The Sygnum DCHF is an integral part of our tokenization offering, facilitating settlement of transactions and execution of smart contract payment structures, for example dividend pay-outs and other corporate actions.”
– Markus Hartmann, Sygnum Bank’s Head of Tokenization
Sygnum’s tokenization solution provides corporates the ability to raise new capital by producing asset tokens based on existing financial assets. It also aims to improve the life-cycle management of securities issuance and investment, part of which is the automated execution of corporate actions. Sygnum’s tokenization offering, coupled with the DCHF, provides a holistic and seamless solution.
Accounts from Sygnum can accept deposits in traditional fiat currencies including CHF, EUR, SGD and USD, where these balances can be transferred into Sygnum DCHF tokens via a convenient e-banking portal. Sygnum clients can also securely buy, trade and hold an expanding range of digital assets in one account, including bitcoin (BTC), ether (ETH) and other tokens.