Vontobel and Pictet have issued tokenized equity certificates, representing a basket of securities. And Credit Suisse has issued structured notes, a derivative financial instrument that can be backed by any asset.

The banks conducted Proof-of-Concept, which involved:

issuance of tokenized securities on the Ethereum test blockchain;
fiat trading in digital financial instruments on the regulated BX Swiss exchange;
settlement of transactions through smart contracts.

The first results of the trial showed that all the operations were completed in a few hours. In a traditional financial model, without the use of blockchain, they would take several days.

The banks used the CMTA token standard and the CMTAT smart contract, developed by the Capital Markets and Technology Association, to tokenize their investment products. Transactions were settled using an on-chain mechanism, which secures the obligations of the parties.

Trades in tokenized securities were settled in the Swiss franc through the DLT2Pay payment bridge, which connects the blockchain to the Swiss Interbank Clearing (SIC) and the Real-Time Gross Settlement (RTGS) system.

The process, safety, and technical aspects were managed by Taurus, whose technology was used to issue and manage structured notes.

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Credit Suisse, Pictet, and Vontobel have tokenized their products