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: Maximilian Bruckner, Christian Viehof
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. 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 is listed in Tokenbase with the ITIN YGXH-49SW-9. In figure 2 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 Right 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.
As we are well aware of the subjectivity of each framework and its existing biases, we would also like to invite all readers to provide their feedback on our approach and/or to join the ITC Working Group to develop the next ITC update together with us. Just like all other standardization projects of the International Token Standardization Association (ITSA) e.V., the International Token Classification (ITC) framework will be updated and developed further regularly. Therefore, we would highly appreciate external feedback or suggestions on new Dimensions to be added or new ecosystem trends to be incorporated. Finally, we are always looking for partners that are interested to classify new sets of tokens together with us, either as part of a research project, an academic thesis, or any other viable cooperative setting. You can find contact details in the remarks section of this article.
If you like this article, we would be happy if you forward it to your colleagues or share it on social networks. More information about the International Token Standardization Association can be found on the Internet, on Twitter, or LinkedIn.
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 email@example.com and connect on LinkedIn if you would like to further discuss ITSA or have any other open questions.
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 firstname.lastname@example.org and connect with him on Linkedin, if you would like to further discuss ITSA e.V. or have any open questions.
ITSA e.V. aims at promoting the development and implementation of comprehensive market standards for blockchain- and DLT-based cryptographic tokens. To increase transparency and safety on global token markets, ITSA e.V. assigns a unique and fork-resilient identifier (the ITIN) to each token and classifies the token according to our International Token Classification Framework (ITC). This data is then entered into the TOKENBASE. It is our vision to create the world’s largest DLT token database and see our market standards be implemented across the world. Our working groups are actively driving the development and progress of both the ITIN and the ITC.