Swiss-Based Overture To Become First Authorized IPO On Ethereum Blockchain
As firm in Switzerland, is now permitted to integrate a blockchain IPO that offers tokenized shares. In an announcement made Wednesday, Andriotto Financial Services says that Overture, the firm for which it offers financial advice, is going to provide something different than what other security offerings do:
“The company has approved the first Swiss articles of incorporation that directly states the digital nature of the shares (tokens) and the use of the blockchain as the technology to keep the shareholders registry […] transfer of the company ownership can be achieved only with a transfer of the tokens on the blockchain and only the ownership of the token can give the status of shareholder.”
Overture Will Offer Class-A Shares on the Ethereum Blockchain
Overture will provide class-A shares with Zug-based EURO DAXX (which stands for the European Digital Assets Exchange) smart contracts on the Ethereum blockchain. By deploying blockchain technology this way, the efficiency in the major capital markets is boosted, claims Overture, in the sense that banks, central depository systems, broker dealers, as well as other financial intermediaries no longer need to be involved.
The native blockchain approach to the securities offerings is expected to be warmly welcomed by the most important new platforms in Switzerland, for example by the upcoming Swiss Digital Exchange from SIX Swiss Exchange.
The IPO Model to Become More Prevalent?
There are many voices saying the original IPO model, no matter if implemented on the blockchain or not, may become more and more prevalent in the crypto and blockchain space this year. This month at Davos, the CEO of Ripple, Brad Garlinghouse, said he expects more crypto companies to want to launch IPOs, so Ripple itself may be interested in a public flotation. Until now, the crypto industry had to focus solely on ICO's, which are the alternative model for issuance, especially for new firms that don’t want to deal with the regulatory requirements of creating a traditional IPO.