SIX Digital Exchange successfully tokenizes private shares on its regulated, blockchain-based central securities depository in cooperation with F10 and Aequitec.
SIX Digital Exchange (SDX), the world’s first fully regulated digital asset exchange and central securities depository (CSD), in collaboration with F10, a global FinTech and InsurTech innovation ecosystem, and Aequitec, a digital share registry and cap table company, announces the first-ever tokenization of shares on a fully regulated CSD based on distributed ledger technology (DLT).
F10 will issue its shares through SDX’s CSD, where shares are tokenized while share registry services are provided by Aequitec. Tokenized private shares are transferable in the form of dematerialized book-entry securities on the SDX DLT platform under Swiss law.
With this new partnership approach, financial institutions can move beyond today’s business model of customized, individual private placements to a sustainable, digitized, process-driven business. The expected benefits are increased efficiency and greater liquidity for private markets. This is an important step in streamlining the share registry process for private companies through the use of blockchain technology. Orchestrating processes between all parties involved creates a collaborative effort that ensures a seamless experience for issuers, investors, and SDX member banks. Today’s announcement is the first milestone in the collaboration with Aequitec. It demonstrates the impact of SDX’s strategy to actively collaborate with venture capital partners and the SME investor community.
Massimo Butti, Head of Equity at SDX, said, “An ecosystem that supports private companies in their financing journey and mitigates the complexities and shortcomings of private equity issuance can only be achieved through collaboration: with existing and new players, by leveraging existing processes as well as creating new technical standards. The issuance of F10 shares on SDX is the result of collaboration with various market players. It provides a scalable formula for additional issuers and participants to issue digital shares and confirms that our private issuance market is open for business.”
Christian Wilk, CEO of Aequitec, noted, “Bankable shares allow our clients’ shareholders to keep their private equity shares safely in their bank depository. In addition, as an equity issuer, with the help of Aequitec’s interactive processes for capital raises and general meetings, F10 can further streamline its processes and strengthen corporate governance practices, resulting in higher ESG ratings and better access to equity fundraising.”
Jonathan Seiler, CFO and Senior Investment Manager at F10, added, “Aside from the clear benefits of F10’s fully digital management of our share register and all related processes, we strongly believe in the importance of collaboration to advance the financial industry. Therefore, we are very excited to be the first share issuer for this innovative offering from our partners: SDX and F10 alumnus Aequitec.”