Blockchain technology continues to expand across the world.

Today the world has seen what many believe is the first major step towards a new way to fund startups.

According to show Journalist issued by “Andriotto Financial Services” on January 29, 2020 The State of Switzerland has recently approved the establishment of “OverFuture SA,” which will use an IPO of token shares stored directly on the blockchain.

For many, it is the first approval of its kind for a Swiss-compliant digital initial public offering (IPO) for common stock companies.

Swiss companies will now be able to publicly store their Class A common shares on the blockchain, giving them the ability to launch initial public offerings (IPOs) and control their secondary transactions in the market, all without the involvement of any third party such as a bank or other type of institution the public.

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A revolution on the horizon of Switzerland:

While this is not the first time companies have used blockchain to help them access financing.

But this move could represent a major revolution for Swiss companies.

The recent press release explains that the main difference between other forms of securities currently available on the blockchain is that the incorporation documents of “OverFuture” directly define the digital nature of the shares (tokens) and the shareholder registry will be stored using blockchain technology.

In other words, OverFuture’s “tokens” represent ownership of the company rather than traditional shares.

An IPO, also known as a stock exchange launch, is a form of public offering in which company shares are sold to investors.

So far, it has had to go public within Swiss borders by one or more financial institutions.

But with the state’s recent approval of an “OverFuture” initial public offering, companies can now digitally organize their shares and publicly list them on the blockchain, all without the need for any third-party institution.

Blockchain technology makes the difference:

This new use of blockchain technology will allow Swiss companies to maintain more control over their transactions in the market.

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Additionally, the use of blockchain technology will also keep clearing and settlement functions completely decentralized through the use of smart contracts, making transactions more secure than ever.

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According to the press release, OverFuture will use the Ethereum blockchain for the IPO, and smart contracts will be provided and handled by the European Digital Asset Exchange, which is headquartered in Zug, Switzerland.

When it comes to the time and cost of launching an IPO, the move by Swiss authorities makes a huge difference in the way companies can access financing and sell shares to their investors, particularly when compared to traditional financial systems.

Other exchanges such as the “Swiss Digital Exchange” (SDX), are now preparing to enter this new era of digital.

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