Swiss regulated digital assets bank, Sygnum, is launching a digital version of the Swiss franc (DCHF), designed to increase transaction efficiency and ease between other digital assets and fiat currencies, according to a report on Monday.
The currency is built on the blockchain technology and its value is pegged to the country’s national Swiss franc. The stablecoin eliminates the need for any intermediary, since it can be transferred in real-time, and settled almost immediately. Basically, it will protect customers from the counterparty, reduce complexity, costs, and time.
For institutional clients, Sygnum explained that the stablecoin plays as a central component of the digital asset ecosystem that allows full integration of asset tokens into banking infrastructure.
“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,” the Head of Tokenization at Sygnum Bank, Markus Hartmann commented.
The Sygnum noted in the report that it would hold an equivalent amount of CHF as collateral in the country’s central bank, Swiss National Bank (SNB), for all the stablecoin minted in its customer accounts.
The crypto bank supports deposits in multiple fiat currencies, including EUR, CHF, USD, and SGD. It will be using a convenient e-banking portal to transfer these balances to the new stablecoin, DCHF. Users will be able to buy, trade, and hold several digital assets like Bitcoin, Ethereum, and asset tokens, using DCHF, the bank said.
Sygnum receives first crypto operation license
Back in August 2019, the Financial Market Supervisory Authority (FINMA), the Swiss financial watchdog approved Sygnum and SEBA Crypto bank to provide cryptocurrency-related services to institutional and professional clients in the country
As Coinfomania reported, the banking and securities dealers’ licenses granted to both banks were the first license to be released by FINMA to “pure-play blockchain service providers.” However, the approval also came with new guidelines.
The regulator warned companies under its supervision to conduct crypto-related transactions only with the verified clients, given that the “inherent anonymity of blockchain technology presents increased risks.”
Read original at Coinfomania
Author: Ibiam Wayas