Financial Crime World

Here is the converted article in Markdown format:

Breaking News: Token Transferability Entangled with Corresponding Securities

The Swiss government has made a groundbreaking move by passing the Lex DLT, a revolutionary law that ties token transferability to corresponding securities. This legislation aims to create a robust digital securities framework, ensuring seamless trading and custody of ledger-based assets.

Key Provisions

  • Professional custodians can credit ledger-based securities to client accounts, effectively “intermediating” them.
  • Foreign issuers can issue ledger-based securities under Swiss law, providing an opportunity for international companies to tap into the Swiss market.
  • In the event of custodian bankruptcy, digital assets must be segregated and transferred to their owners.

Industry Response

The Swiss financial industry has shown significant interest in digital assets. Various mainstream issuers have already issued equity securities in the form of digital tokens recorded on public blockchains. The growing demand for digitalized debt instruments is expected to drive growth in this sector.

  • Regulated trading platforms, such as SDX and TDX, are now licensed to operate in Switzerland, providing a secure environment for trading digitalized securities.
  • The Swiss Bankers Association has announced plans to introduce a digital Swiss franc stablecoin, further solidifying the country’s position as a leader in digital finance.

Industry Standards and Guidelines

The Capital Markets and Technology Association (CMTA) has developed various standards and guidelines for the issuance, trading, and custody of digital assets. The organization has also published open-source smart contracts that can be used for tokenization and trading of financial instruments.

  • For more information on CMTA or to learn about their certification solutions, please visit their website at cmta.ch.

About the Author

Jacques Iffland is the Chair of the Capital Markets and Technology Association. He can be reached at jacques.iffland@cmta.ch.

Contact Information

Capital Markets and Technology Association Route de Chêne 30, 1208 Geneva