Swiss Security token firm, BlockState recently announced that it will passport half a docen of ERC-tokens from Ethereum platform to Corda. reportedly, this is a bid aimed at opening up the market and issuing more tokens to both retail and institutional investors.
BlockState will be issuing the tokens on Corda, a private distributed ledge technology from R3. The latter platform is being built for Swiss Digital Exchange (SDX).
Issuance of the tokens on Corda has been made possible through BlockState issuing them as global depository shares, where the company’s shares are held in another country while the certificate of ownership is used for trading in another country in the traditional market.
Furthermore, the above initiative is also aimed at bringing together investors and taking some burden off their backs. Through the platform, investors will not have to deal with the managing of a wallet since SDX will assume that responsibility. Notably, retail investors, will not have to work with a financial institution that is connected to a regulated secondary market. However, they will be able to get ERC-20 tokens in custody.
BlockState to Run its First Pilot Program of Security Token Offering on Corda
While Corda will contain ERC-20 tokens from Ethereum platform, BlockState will also run its first trial of a security token offering through its own security token offering (STO). Besides STO, there are five other tokens in the pipeline scheduled for issuance. One will come from urban music and lifestyle firm Streetlife while others assets will be tokenized from sustainable energy and real estate sector.
In addition to issuing the tokens, BlockState will also be registering the tokenized assets as securities in Switzerland. One question that keeps coming up is: why did BlockState choose Switzerland? Firstly, Switzerland has a vast number of high net worth investors who are ready to purchase a newfangled digital asset.
Apart from that, the regulatory environment in Switzerland is friendlier compared to other countries. Furthermore, the Swiss capital market law takes care of uncertified shares. As BlockState starts to issue its tokenized tokens, the above move is acting in favour of the crypto industry at large since its spearheading mass adopting of digital assets.