Credit Suisse is working in close cooperation with Swiss crypto custody and trading platform Taurus to create Ethereum-based (ETH/USD) shares in a Swiss athletic resort and tokenize it through the Ethereum blockchain. The Swiss bank tokenized its shares in Alaïa SA, an adventure sports company that owns a hotel and some chalets in the Crans-Montana Alpine resort area. The announcement was made today.
Tokens created as per CMTA standards
Taurus and Credit Suisse are cooperating closely to create tokens in accordance with Swiss CMTA standards. In February of this year, the Swiss government amended the law to allow trade of tokenized securities on a blockchain, giving it the same legal status as trade of traditional assets.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Taurus co-founder Lamine Brahimi said in an interview, quoted by Invezz:
The blockchain is recognized in the law as a valid ledger whereby you can register shares. I think that’s a very important move for large regulated institutions because now there’s zero ambiguity. I think what’s interesting is that this project is not just about tokenizing shares and booking them in the system. It’s also making a private placement, i.e. capital increase, based on tokenized securities, with the objective to provide secondary market trading for those. And both the bank and Alaïa are committed to doing so.
Next step is private share placement
Next, Credit Suisse plans to organize a private placement for Alaïa tokenized shares. The shares will be listed on the TDX (Taurus Digital Exchange) in the first quarter of next year. This will provide liquidity to Alaïa staff and investors. Taurus obtained a license to operate a digital asset marketplace, which was issued by Swiss markets regulator FINMA earlier this year.
Tokenizing real estate is becoming a practice
This is the third incidence of blockchain-based shares in a resort. Three years ago, trading platform Templum launched so-called Aspen coins, which were tokenized shares in Colorado’s St. Regis Aspen Resort. Later, these shares were made available on the Overstock-owned tZero trading platform. An Indonesian resort was tokenized and auctioned using NFTs (non-fungible tokens) more recently.
67% of retail CFD accounts lose money