What’s Going On?
Swiss fintech and legal companies have joined with academic centres to establish a new body – the Capital Markets and Technology Association – to promote and standardise the use of blockchain in financial markets.
Why Does It Matter?
EconoTimes reported the CMTA has been established as a not-for-profit, non-governmental association by Switzerland’s largest law firm, Lenz & Staehelin, as well as online banking company Swissquote Bank and banking software producer Temenos.
It has its registered office in Geneva, Switzerland, and says it “provides a platform to create open industry standards around issuing, distributing and trading securities in the form of digital tokens using distributed ledger technologies”.
CoinTelegraph noted that Switzerland has presented itself as a blockchain-friendly country and attracted crypto interest thanks to the so-called Crypto Valley, a centre of fintech activity in the Swiss city of Zug. The city has previously announced it will trial a blockchain-powered municipal vote this summer.
“The blockchain technology has the potential to reduce the complexity of the capital markets system and lower the barrier of entry for start-ups,” said Jacques Iffland, CMTA’s chair, and partner at Lenz & Staehelin in an official statement. “The current lack of legal certainty is slowing – and potentially compromising – its development in this field.”
Marc Bürki, CEO of Swissquote, added: “The combination of Switzerland’s regulatory framework and the emergence of new technologies provides an opportunity to simplify the manner in which companies can distribute their securities and raise capital, and also the manner in which investors can acquire and trade these assets.”