Last updated on February 11th, 2020 at 08:29 am
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Switzerland Ethereum IPO
The use of blockchain technology continues to grow around the world. This year will definitely be a remarkable year as the world witnesses what many believe is the first major legal step towards a new way for blockchain startups to access capital.
As per the press release by Andriotto Financial Services on January 29th, 2020. Switzerland just approved OverFuture SA’s incorporation by using an IPO in the form of tokenized shares stored directly on the ethereum blockchain.
According to some experts, the approval from Swiss government is seen as the first Swiss-compliant digitized initial public offering (IPO) of a company’s ordinary shares. In other words the first Switzerland Ethereum IPO (ethereum blockchain powered IPO).
With the new development, Swiss companies can publicly store their ordinary class-A shares on the blockchain. This will enable them to launch IPOs (initial public offerings) and control their secondary market transactions, without involving any third-party intermediary such as a bank or any other type of public institution.
From the release, the main difference between other forms of securities that are currently stored on the blockchain is that OverFuture’s articles of incorporation directly state the digital nature of the shares (tokens) and that the shareholders’ registry will be stored using ethereum blockchain technology.
This simply means that the OverFuture’s “tokens” will represent one’s ownership of the company, as opposed to traditional shares.
With the approval of OverFuture, companies can now organize their shares digitally and list them publicly on the blockchain without involving any third-party institution. Others companies seeking to raise funds can use the Switzerland Ethereum IPO model to raise funds.
The recent use of blockchain technology will allow Swiss companies to have control of their market transactions. Moreso, the use of blockchain technology will help decentralize some functions like settlement functions using smart contracts.
According to the press release, OverFuture will be using the Ethereum blockchain for its IPO while the smart contracts will be provided and handled by the European Digital Assets Exchange, based in Zug, Switzerland.
This has changed the way companies can raise funding and sell shares to their investors in terms of cost especially in comparison to traditional financial systems where capital markets are dominated by major banks and institutions.
Other regulated exchanges in the country that are looking to imploy the same technology include the Swiss Digital Exchange (SDX).
