SEBA Bank Tokenizes Shares and Expands DeFi Services

In December 2020, the Swiss SEBA Bank announced it would tokenize shares for its Series B fundraising once the first part of the Swiss DLT-Act came into force. The SEBA Bank Equity Token (SET, YGXH-49SW-9), issued in February 2021, is fully compliant with the DLT-Act and Swiss private and corporate law. ITSA has identified and fully classified the SEBA Equity Token according to the International Token Classification (ITC) framework and assigned a unique identifier. SEBA also announced the expansion of their cryptocurrency offering, adding three DeFi tokens.

Authors: Christian Viehof, Maximilan Bruckner

In a recent press release, SEBA announced its decision to expand its cryptocurrency offering to include three major DeFi tokens: Synthetix (SNX, 7TZF-48YH-1), Uniswap (UNI, FVJ0–7CC4–9), and Yearn.finance (YFI, SJDH-H2DJ-8). Data from the DeFi aggregator platform DeFipulse show that these three projects are among the top 10 DeFi tokens in terms of total value locked. Uniswap is an automated market maker (AMM) decentralized exchange (DEX) platform on the Ethereum network, synthetix is a DeFi protocol for issuing and trading synthetic assets based on real-world commodities, and Yearn.finance is a DeFi marketplace for lending, insurance, aggregation, and yield generation. According to their statement, the FINMA-licensed SEBA bank will offer investment solutions, trading, and custody services for the newly added DeFi offerings same as the other cryptos already present in SEBA’s portfolio.

As a consequence of the quickly expanding Defi sector, two lists of relevant tokens of the Uniswap and Synthetix ecosystems have been added to the Tokenbase.

Figure 1: Uniswap list as seen in the Tokenbase (click here to enter the list)

Here, you can see a simple list of some of the largest and most interesting projects listed on UniSwap. A similar list is available for Synthetix here. Tokenbase is a holistic database for the analysis of tokens that combines identification data of the ITIN and classification according to the ITC with market and blockchain data from external providers. Currently, Tokenbase holds data on over 4000 tokens with third-party data of several partners already integrated and API access in development. The list entries are linked to their specific Tokenbase entry and ITIN (a 9-digit alphanumeric technical identifier for DLT-based fungible and non-fungible tokens). This allows the connecting and matching of other media and data to the token, such as legal contracts or price data.

The SEBA Equity Token in Tokenbase

The SEBA Equity Token is listed in Tokenbase with the ITIN YGXH-49SW-9. In figure 2 below, you can see the basic data and resources available for the SEBA Token, such as a link to the website, etherscan, and relevant social media channels. In-depth market data can be collected via API or seen through the “Open as JSON” link.

Figure 2: Tokenbase entry of the SEBA Equity Token with JSON file for API access (Source: https://itin.itsa.global/YGXH49SW9)

In figure 3, you can see the full classification of the SEBA Equity Token according to ITC version 1.0. Most notably, SEBA is classified as an Equity Token with Relative Rights, and as such is a Crypto Asset out of Scope of MiCA. We will now move into a more detailed breakdown of the SEBA Token classification.

Figure 3: The SET token is fully classified (Source: https://itin.itsa.global/YGXH49SW9)

Economic Purpose (EEP): SET is listed as an Equity Token (EEP23EQ) due to its design as tokenized equity security. This is possible under the Swiss DLT-Act.

Industry Type (EIN): SEBA Bank, the issuer of the token, is active in the field of Banking, Custody and Financing Services (EIN06BS).

Technological Setup (TTS): Because SET is an ERC-20 Token on the Application Layer Token of the Ethereum blockchain, it is classified as an Ethereum ERC-20 Standard Token (TTS41BC).

Legal Clam (LLC): Due to its nature as tokenized equity, SET provides its holder with a claim against a legal counterparty and thus with relative rights towards a third party, therefore it is listed as a Relative Rights Token (LLC32). These claims or rights are the same as one would find through a traditional, non-tokenized equity.

Issuer Type (LIT): The dimension “Issuer Type” provides information on the nature of the issuer of the token. SEBA Bank is a registered financial institution in Zug, so its Issuer Type is Private Sector Legal Entity (LIT61PV).

Regulatory Framework (EU) (REU): The dimension “Regulatory Status EU” provides information of the potential classification of a token according to the European Commission’s proposal for a Regulation on Markets in Crypto Assets (MiCA, Regulation Proposal COM/2020/593 final). SET qualifies as a Crypto Asset out of Scope of MiCA (REU52) according to the definition provided in Article 2 of Regulation Proposal COM/2020/593 final.

The International Token Standardization Association (ITSA) e.V.

The International Token Standardization Association (ITSA) e.V. is a not-for-profit association of German law that aims at promoting the development and implementation of comprehensive market standards for the identification, classification, and analysis of DLT- and blockchain-based cryptographic tokens. As an independent industry membership body, ITSA unites over 100 international associated founding members from various interest groups. In order to increase transparency and safety on global token markets, ITSA currently develops and implements the International Token Identification Number (ITIN) as a market standard for the identification of cryptographic tokens, the International Token Classification (ITC) as a standard framework for the classification of cryptographic tokens according to their inherent characteristics. ITSA then adds the identified and classified token to the world’s largest register for tokens in our Tokenbase.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.

Remarks

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Christian Viehof is an Executive Director at the International Token Standardization Association (ITSA) e.V., working to create the world’s largest token database including a classification framework and unique token identifiers and locators. He completed his Bachelor in Economics at the University of Bonn, the Hong Kong University and the London School of Economics and Political Science with a focus on Behavioral Economics and Finance. Currently pursuing his Master of Finance at the Frankfurt School of Finance and Management, you can contact him via christian.viehof@itsa.global and connect with him on Linkedin, if you would like to further discuss ITSA e.V. or have any open questions.

Maximilian Bruckner is Executive Director at the International Token Standardization Association (ITSA) e.V., working to create the world’s largest token database including a classification framework and unique token identifiers and locators. He has a strong international background with significant time spent in Spain, South Africa, and Canada. Currently pursuing studies at the Frankfurt School of Finance and Management, you can contact him via maximilian.bruckner@itsa.global and connect on LinkedIn if you would like to further discuss ITSA e.V. or have any other open questions.

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.