Sygnum, a Swiss bank, has announced the launch of the Float token, a digital asset that offers investors exposure to a diversified portfolio of SME loans to European SaaS and technology businesses. The token has a maturity of 18 months and a fixed annual interest rate of 14 percent, with quarterly interest payments.

One of the key benefits of the Float token is its on-chain proof of ownership and ease of transferability. It also offers lower ticket sizes and liquidity in Sygnum’s secondary market, SygnEx. The token and investor rights are fully compliant under the Swiss DLT legal framework.

This marks the first time that a high-yielding private market instrument is being made widely available to investors through tokenization. Sygnum aims to make private market assets more easily accessible and investable.

The CEO and Co-Founder of Fasanara Capital, Francesco Filia, believes that tokenized debt markets are on the verge of going mainstream and expects the asset class to reach $3.5 trillion by 2030. This partnership between Sygnum and Fasanara Capital is seen as a breakthrough for tokenization, with plans to bring even more debt on-chain.

Cedric Notz, CEO and Co-Founder of Float, highlights the interdisciplinary collaboration required to make the issuance of the Float token a reality. He believes that this type of innovative partnership will transform the face of traditional finance in the future.

Sygnum has been at the forefront of tokenization solutions, offering a regulated, end-to-end solution for primary market issuance and secondary market trading. Their Desygnate platform and SygnEx trading facility have paved the way for the tokenization of various assets.