SIX Digital Exchange tokenizes private shares on blockchain-based Central Securities Depository
Switzerland’s SIX Digital Exchange (SDX), the world’s first fully regulated digital asset exchange and Central Securities Depository (CSD), working in partnership with F10, a global FinTech and InsurTech Innovation Ecosystem and Aequitec, a digital share register and cap table company, announces the first-ever tokenisation of equity shares in a fully regulated CSD based on Distributed Ledger Technology (DLT).
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F10 will issue its shares with the SDX CSD where shares are tokenised, while the share registry services will be provided by Aequitec. Tokenized private shares are transferrable in the form of dematerialized intermediated securities on the SDX DLT platform according to Swiss law.
With this new partnership approach, financial institutions can move beyond today’s business model of tailor-made, one-by-one private placement, to a sustainable, digitalized, process-driven business. Expected benefits are increased efficiency and greater liquidity for private markets. This represents a major step towards enhancing the share registry process for private companies by using blockchain technology. By orchestrating processes across all involved parties, the collaboration ensures a seamless user experience for issuers, investors, and SDX member banks.
Today’s announcement represents a first milestone in the partnership with Aequitec showing the impact of SDX’s strategy to actively engage with venture capital partners and the SME investor community.
According to Massimo Butti, Head of Equity at SDX: “An ecosystem that supports private companies in their funding journey and reduces the complexities and inefficiencies of issuing private equity can only be achieved through collaboration: with existing and new players; by leveraging existing processes; and by creating new technical standards. The issuance of F10 shares on SDX is the result of the cooperation with different market actors. It provides a scalable blueprint for other issuers and participants to issue digitized shares and affirms that our private issuance market is open for business”.
Christian Wilk, CEO of Aequitec, notes: “With bankable shares our customers’ shareholders can safely store their private equity shares in bank custody. Moreover, with the help of Aequitec’s interactive workflows for capital increases and annual shareholder meetings, F10 as equity issuer can further streamline the processes and strengthen corporate governance practices, resulting in higher ESG ratings and better access to equity funding”.
Jonathan Seiler, CFO and Senior Investment Manager at F10: “Beyond the clear advantages of managing our share registry and all related processes fully digitally at F10, we believe strongly in the power of collaboration to advance the financial industry. That's why we are incredibly excited to be the first issuer of shares for this new innovative offer by our partner SDX and F10 alumni Aequitec”.