Introduction

The mountain has given birth to a mouse: In Switzerland, the introduction of tokenised shares has attracted a lot of attention. However, despite the initial hype, it has become clear that proven technologies are often more efficient and practical for managing share registers. This article sheds light on current developments and presents an attractive alternative.   

Tokenised shares in Switzerland: legal framework and market acceptance

Since 1 February 2021, Swiss stock corporations have been able to issue their shares as registered securities on the blockchain. This option was introduced with great expectations, but the reality is different:

• • Low demand: Despite the legal framework, the acceptance of tokenised shares has so far been limited.

• • Complexity: The implementation and administration of blockchain-based systems often proves to be complex and costly. Managing shares on the blockchain is a major challenge, particularly for the majority of shareholders.

• • Lack of liquidity: Although there are a few providers in Switzerland that support the purchase and sale of tokenised shares, these marketplaces lack sufficient liquidity, which is why sales in particular are associated with challenges for both investors and issuers. In addition, the number of providers has already decreased again since the introduction of registered securities rights into the Swiss legal system.

Efficient share register management without blockchain

In view of these challenges, numerous early adopters who have issued their shares as uncertificated securities on the blockchain are once again looking for viable alternatives. Proven technologies offer decisive advantages here:

1. 1. Ease of use:
      Digital share registers without a blockchain are user-friendly and do not require any special technical knowledge, such as opening and managing a blockchain wallet or transferring tokens on the blockchain.
   2. Cost-effective:
      Implementation and operation are significantly cheaper than with blockchain solutions. In particular, the transfer of shares does not incur any transaction fees.
   3. Speed:
      An online share register can be set up in just a few minutes and does not require a weeks-long implementation project.
   4. Control over entries in the share register: 
      One of the major challenges of tokenized shares is the contradiction between the anonymity of the blockchain and the transferability of share tokens on the one hand and the disclosure of the shareholder's identity for entry in the share register on the other. With traditional digital share registers, the board of directors retains complete control over the transfer of shares and thus over the identity of its shareholders.
   5. Legal security 
      A traditional digital system that implements legal requirements in a legally compliant manner relieves the Board of Directors of complex tasks such as register management, determining beneficial ownership and share transfers, even without complex technical structures.

Konsento: The efficient alternative for your share register

Konsento offers a modern solution for the digital administration of share registers based on proven technology: 

• • Free of charge for up to 150 shareholders

• • User-friendly interface

• • Automatic update for share transfers

• • Support for legally compliant transfers

• • Numerous analysis, filter, sorting and export options

• • Register of beneficial ownership

• • Integrated functions for general meetings and shareholder communication

• • Highest security standards without the complexity of blockchain

In light of current events, Konsento is offering a free migration service for existing daura customers that allows them to quickly and easily import share registers from daura into Konsento.

 

 

 

 

While tokenised shares sound promising in theory, practice shows that proven digital solutions are often more efficient and practical. Konsento offers an attractive alternative for companies looking for a modern, cost-effective and legally compliant share register.

Are you ready for the next step?

Are you looking for a simple and affordable alternative to complex blockchain solutions like daura's for your share register?

• • For companies with up to 150 shareholders: Register now for free with Konsento and get started with your digital share register.

• • For stock corporations with more than 150 shareholders: Contact us for a customised offer and find out how Konsento can optimise your share register management.

Visits konsento.ch and discover the advantages of efficient share register management without blockchain!

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