Cité Gestion Becomes First Private Swiss Bank to Tokenize Shares

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Genesis Global’s lawyers testified in federal bankruptcy court in New York City on Monday that they have been working “around the clock” for the past two months to come to a “consensual agreement” with creditors’ representatives and the U.S. Trustee’s Office. After what its lawyers referred to as “a run on the bank” following FTX’s demise, the company’s lending arm stopped accepting withdrawals on November 18, 2022. Genesis Global Holdco, the parent company of Genesis Global Capital, together with two of its subsidiaries, namely Genesis Asia Pacific (GAP), filed for Chapter 11 bankruptcy protection two months later.

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The first private Swiss bank to issue shares as ledger-based securities is Cité Gestion. Most recently, investment management business Hamilton Lane (HLNE) announced that it will tokenize three of its funds in an alliance with company Securitize, a provider of digital asset securities, with the goal of opening up private market investments to a larger group of investors. The declaration came after KKR, a major investor, announced plans to tokenize its Health Care Strategic Growth Fund on the Avalanche blockchain in September. The bank stated in the statement that the tokenization of Cité Gestion’s shares was done in compliance with guidelines set by the Capital Markets and Technology Association (CMTA), a non-profit organization with its headquarters in Geneva. According to Christophe Utelli, Deputy CEO of Cité Gestion, “Taurus and the use of the CMTA standards ensure that an acceptable risk management framework is at the heart of the process.”

The first crypto-related legislation that Congress takes up this term might be related to stablecoins. It is a “narrower concern” than the more wide issue of general crypto market structure, according to Katherine Dowling, chief compliance officer of cryptocurrency investment management Bitwise. According to her, legislation passing would be “huge plus” for the sector. She claimed that after cryptocurrency exchange FTX went under, the industry suffered a loss of momentum but that it may now be in a position to regain its strength.

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