We believe in the superior characteristics of public blockchains!

The tokenisation of securities on open blockchain infrastructures, promises a new level of interoperability, regulated but open access and massive cost reductions while simultaneously increasing efficiency. It also breaks through national monopolies and increases liquidity, which helps small and medium-sized enterprises. We therefore welcome regulation for blockchain technology but advocate for a fair assessment of public vs. private.

The future of public blockchain is in danger!

If the Bank for International Settlements (BIS) has its way, there will be much fewer security tokenisations on public blockchains such as Ethereum.

Banks are being asked to provide excessive capital for securities issued on public blockchains rather than private ones, which poses several challenges:

• Disregards the robustness of public blockchains.
• Contradicts the principle of tech neutrality.
• Stifles crucial innovations, particularly in bankable products.

This results in over 1 dollar of equity capital required for every 1 dollar worth of security. While tokenization holds immense potential, especially for Switzerland (CH), the Basel Committee on Banking Supervision’s (BCBS) proposed capital backing requirements threaten to negate these advancements. Sacrificing the specific standards set for digital securities, unique to Switzerland, would not only impact the nation but also deal a severe blow to the entire blockchain industry globally.

For further information please refer to the official Statement of the Boerse Stuttgart Group on the BCBS consultation on amendments to the cryptoasset standard.