CMTA Publishes Its Debt Tokenization Standard

The Capital Markets and Technology Association (CMTA), a Geneva-based non-profit organization that develops standards for the use of distributed ledger technology in capital markets, has published a standard for the tokenization of debt instruments using distributed ledger technology. The document offers practical guidance on how debt instruments can be issued as ledger-based securities pursuant to Article 973d et seq. of the Swiss Code of Obligations. In particular, it provides direction on how debt securities issued by both Swiss and non-Swiss entities can be tokenized under Swiss law. The release of the standard comes at a time when tokenized securities are gaining traction in Switzerland, with FINMA having granted its first license for a DLT-based trading facility in March.