Digital asset bank, Sygnum has launched the Sygnum Digital CHF (DCHF), a settlement token pegged to the Swiss Franc.
The launch means that 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).
Mathias Imbach, Sygnum Co-Founder and CEO Singapore commented: “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.”
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.
Sygnum’s DLT-based DCHF can be transferred in real-time, resulting in almost immediate settlement of transactions and eliminating the need for intermediaries.
Markus Hartmann, Sygnum Bank’s Head of Tokenization added: “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.”
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.