Choosing Switzerland for enhanced security: The ideal investment environment
Switzerland’s blend of financial and legal systems makes it a highly attractive destination for secure investments. This article explores the unique attributes of Switzerland’s financial infrastructure that make it the perfect choice for trustworthy investments.
With a renowned and modern regulatory framework, commitment to privacy, and economic stability, Switzerland offers an unmatched environment for safeguarding your investments. This is why companies such as Binance, Mt Pelerin, Nexo, Cosmos, and Solana, are based in Switzerland.
Switzerland is recognized as a global leader in international financial services, with a broad range of banks, asset managers, insurance companies, Fintech and Blockchain companies, as well as consulting firms that provide comprehensive services and innovative solutions to clients worldwide. Benefitting from a stable political and legal framework, its own strong currency and a location at the heart of Europe, Switzerland is politically independent yet globally networked.
The Swiss Advantage: Robust Financial System
Switzerland’s strong purchasing power, moderate taxation, and economic and political stability guarantee a high level of security for investments. The country’s economy is known for its liberal and competitive nature, providing a favorable business environment for both domestic and international investors.
On September 25, 2020, the Swiss Parliament adopted the Federal Act on the Adaptation of the Federal Legislation to Developments in Electronic Distributed Ledger Technology (hereafter “DLT Act”).
The DLT Act created a new type of negotiable instrument called ledger-based rights, set out in the Swiss Code of Obligations. A ledger-based security is essentially a digital token associated with a security, typically a share.
“Prior to the DLT Act, it was not possible to tokenize shares in a company and transfer them via a token transfer. We’re now seeing new possibilities opening up.”
Dr. Manuel Meyer, Partner, Baker McKenzie Zurich
Today, non-listed private companies can leverage tokenization to more easily raise capital, notably via online platforms open to diverse classes of investors, be they institutional or individual. Tokenization notably allows small and medium enterprises (SMEs) to finance themselves via private placement and retail investors, such that shares can be easily exchanged on secondary markets.
A recent development in the modification of Swiss law is notable for adapting to the changing dynamics of asset tokenization. The law has been amended to allow a share to have a minimum nominal value of “more than zero”, instead of the previous minimum of one Swiss franc cent. This change, though subtle, is significant. It enables shares to be issued with at a nominal value of 10^9 CHF (close to the Gwei for Ethereum). This eliminates the problem of splitting shares, which must remain unique and indivisible.
To better understand the importance of this legislative change, let’s take the example of kilometers and millimeters. Let’s say you want to measure the distance between two cities. It’s easier to use kilometers rather than millimeters because 1 kilometer is equivalent to 1,000,000 millimeters. Similarly, in the context of shares tokenization, it’s more practical to divide a token into smaller units to represent shares. By setting the face value of a share to the smallest unit on the blockchain, each share becomes indivisible and compliant with regulations. In this way, a token representing 10⁹ shares enables each share to be treated as an indivisible unit, just as a millimeter is the indivisible unit when talking about distance in kilometers.
As of June 2022, several Swiss SMEs seized the opportunity and tokenized their shares. For example, 2021 saw the tokenization of companies active in diverse sectors such as IT, finance, or adventure sports. The interest and demand for tokenization increases as the technology matures and legal processes are streamlined.
A Strategic Security Plan for RealToken Technologies Inc.
RWA Holdings S.A. is a Swiss limited company (S.A.) established with the purpose of acquiring shares in RealToken Technologies, Inc. (RealT). The Swiss structure enables tokenization of the company’s shares through this type of special offering, capitalizing on the country’s blockchain-friendly legislation.
RWA Holdings S.A. will offer 100,000 tokens at a price of $50 per token, representing a total of 10¹⁴ shares (100,000,000,000,000 shares), at a price of $0.00000005 per share. Each token corresponds to 10⁹ shares. The total value of all tokens in the community fundraising is $5,000,000. For one token, the percentage held is approximately 0.0000625% of the company’s value at the time of fundraising, or $80 million. Payment methods are the same as for property tokens. The number of investors is not limited, although a minimum of $50 per investor is required. These conditions guarantee the transparency and accessibility of the investment process.
Current RealToken ecosystem services will also be available for equity token.
Switzerland’s strong financial system, coupled with its innovative approach to blockchain technology, positions it as a prime location for secure and transparent investments.
The streamlined tokenization process, supported by a clear legal framework, allows companies like RealT to unlock new opportunities while prioritizing investor protection.
You can watch our special Community Call: https://www.youtube.com/live/xM_PWLRs1hM?si=7bZQgCDfW85Y1AD7
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