Tokenized Equity

Co-Author of the circular of the Swiss Blockchain Federation. Issued January 2019; updated October 2021.

Tokenized equity represents the digital representation of company shares on a blockchain while preserving the legal rights and obligations of traditional equity instruments. The Swiss Blockchain Federation circular on Tokenized Equity outlines how such blockchain-based shares can be structured within the Swiss legal framework. It explains how distributed ledger technology can be used to record ownership, transfer shares, and manage corporate actions while remaining compliant with Swiss corporate and securities law.

The document highlights the key legal and operational requirements for issuing tokenized shares, including the use of reliable securities ledgers, clear governance rules, and mechanisms that ensure the enforceability of shareholder rights. It also discusses how tokenization can improve efficiency in capital markets through faster settlement, increased transparency, and programmable financial instruments.

Overall, the circular positions Switzerland as a forward-looking jurisdiction for digital securities by providing practical guidance on how companies can legally issue and manage equity in tokenized form while maintaining investor protection and regulatory compliance.

The original document can be found here: https://new.blockchainfederation.ch/wp-content/uploads/2024/04/Circular-2019_01_Updated_Tokenized-Equity.pdf