🏦 Banking On The Blockchain
Market Meditations | January 27, 2023
Swiss Bank Cité Gestion has become the first private bank to tokenise its own shares using blockchain technology. The firm is setting a new standard for private banking and is a clear indication of the growing interest in blockchain technology among traditional financial institutions. The bank has successfully tokenised a portion of its shares and plans to expand the program in the near future.
- Tokenisation is a game-changing process that converts physical assets, such as shares in a company, into digital tokens. These tokens can be easily traded and tracked on a blockchain, the technology that underpins cryptocurrencies. Tokenisation allows for faster, cheaper, and more efficient transactions, as well as, increased transparency and security.
- Cité Gestion, an independent Swiss private bank founded in 2009, is using Taurus technology to tokenise its own shares as the bank delves deeper into blockchain technology. According to the announcement, Taurus will issue the firm’s tokenised shares, as well as manage the smart contracts that create the shares.
- The firm’s decision to tokenise its shares was driven by the increasing demand from its clients for more efficient and secure ways to manage their assets. By tokenising its shares, the bank aims to provide its clients with greater flexibility and control over their investments.
- Recently, Hamilton Lane (HLNE) announced a partnership with digital asset securities business Securitize to tokenise three of its funds, with the goal of making private market investments available to a broader set of investors. KKR made a similar announcement in September, announcing plans to tokenise its Health Care Strategic Growth Fund on the Avalanche blockchain.
- This move sets a new standard for private banking and marks a significant step towards the integration of blockchain technology in traditional finance. The bank’s clients will benefit from increased flexibility and control over their investments, faster and cheaper transactions, and increased transparency and security.
