MME and Swisscom digitalize Swiss shares using the advantage of blockchain technology. This will provide non-listed companies with easy, economical access to the capital market. Daura AG, the newly founded joint venture, will launch its solution in 2018.
Digitalisation makes business more convenient and efficient. However, until today there hasn’t been a convincing solution for capital procurement for SMEs and start-ups. Since their shares are illiquid, the capital market is difficult for them to access. As a result, it is hard for them to find investors. Moreover, due to the formalities required, capital procurement transactions are complicated, inefficient and expensive.
A project bet of digitalswitzerland challenge
As part of the digitalswitzerland challenge 2017, the Fintech Roundtable had placed a bet that this process could be made simpler, faster and cheaper. MME and Swisscom have developed a solution: a digital share on the blockchain that can be transferred worldwide, easily, economical, effectively and compliant with Swiss law. Today, the team presented the daura platform for issuing and registering digital shares at the closing of the digitalswitzerland challenge 2017.
MME and Swisscom incorporated joint venture daura AG
The platform is currently being tested. The daura AG company founded by Swisscom and MME will launch a fully operational share issuing and share registration engine in 2018. The company guarantees the worldwide, secure transfer of Swiss shares and their registration on the blockchain. These so-called crypto shares enable non-listed companies to access the capital market. All legal functions of the shares, such as voting rights, will be integrated in a smart contract.
Using the advantages of the blockchain technology
Blockchain is the digital, distributed storage technology that records all transactions without requiring additional market infrastructure providers. The main advantages are: transparency, faster transactions, lower transaction costs and decentralisation. Company shares can be generated issuing an asset token within a Token Generating Event (TGE). In order to raise capital, a specified volume of tokens is issued to the investor community. In legal terms, shares are issued as dematerialised securities that can be transferred simply and legally valid by means of an electronic signature.