The new research project entitled “Independent Evaluation Framework for Security Tokens” is based at the Competence Center for Banking and Finance at FHS St.Gallen, as detailed in a press release issued by the University of Applied Sciences. Together with industry partners, from April onwards the Competence Center will therefore be looking into “transparency and comparability of security tokens (digital assets such as shares and obligations)”. The project is being co-financed by Innosuisse, the Swiss agency for innovation promotion.
The press release explains that security tokens are being used for a regulated version of financing in which investments are made in digital assets that are stored via blockchain on a decentralized basis that is protected against forgery. The FHS is striving to create standardization in the area of security tokens in conjunction with its professional partners, who have experience in the fields of blockchain and security tokens. Moreover, the different needs of all stakeholders are comprehensively assessed. In addition to standardization, this should also create the basis for a broad-based certification process.
According to the press release, security tokens potentially represent a form of “streamlined and more efficient access to the capital markets”, especially for SMEs. The standardization and certification targeted by the research project should therefore additionally contribute to creating “transparency and trust”, the press release explains further.