In the coming months, Berner Kantonalbank (BEKB), together with daura and other ecosystem partners, will develop a technological infrastructure for the transaction and management of tokenised assets. Corresponding letters of intent were signed on September 9, 2020.

For over fifteen years, BEKB has operated the fully electronic trading platform OTC-X, in the field of unlisted securities from Swiss SMEs. Last December, the bank expressed its intention to integrate its knowledge and network as OTC-X operator into an ecosystem, thereby opening up corporate and investment clients with an innovative trading platform solution based on a blockchain technology. In autumn 2019, feasibility across the entire process chain was proven by means of digital asset tokens as part of a proof of concept in collaboration with partners BEKB, Sygnum Bank and daura.

Blockchain technology increases efficiency

In future, it will be possible to issue and transfer shares as digital asset rights (asset tokens) on a blockchain. This distributed ledger technology will bring about significant increases in efficiency in the processing of securities transactions and automated ledger management.

Through this project, BEKB intends to facilitate the trading of second-tier stocks in this new technological environment. Its focus continues to be on the trade of unlisted securities from Swiss SMEs.

To setting up this new system, Berner Kantonalbank chose daura as its partner to manage share registers on the blockchain and tokenise the shares. In addition, BEKB has signed a letter of intent with Hypothekarbank Lenzburg (HBL) to use the blockchain technology of the Finstar open banking platform developed by Hypothekarbank Lenzburg for the safekeeping of digital assets (see today’s HBL press release).

An important step forward for Switzerland’s digital asset ecosystem

«The solution we are offering will map the entire process chain, from the issue and trade to the custody of tokenised assets, on blockchain technology. We are convinced that what we have created constitutes an integrated solution fit for the future»,

says Armin Brun, CEO of BEKB.

The modules are technically integrated via an open interface architecture. The organised trading system is scheduled for launch in the first half of 2021.

Featured image: edited from Unsplash