Sygnum launches an NFT platform. In particular, this should meet the needs of companies and “other professionally managed institutions”, as the Zurich-based crypto bank reports. As a first step, the platform provides a “launch pad” that allows companies to sell NFTs to the general public in compliance with applicable laws and regulations.
NFT stands for Non-fungible Tokens. These are digital proofs of ownership of intangible assets, such as intellectual property. Typically, NFTs are evidence of unique, non-exchangeable digital assets such as art, collectibles, tweets, or even virtual clothing for the Metaverse.
Sygnum also provides advice on the design of NFT offerings and the development of associated strategies. In this context, the bank ensures compliance with all legal, tax and regulatory requirements related to a specific NFT project. Appropriate concepts are developed in close collaboration to offer customers an exciting new digital experience
NFT as part of customer retention strategy
Sygnum’s NFT platform aims to enable companies to integrate NFTs into their branding and customer engagement strategy. According to the announcement, the crypto bank also sees opportunities for monetizing digital trademark rights.
Sygnum is responsible for the technical configuration of the smart contracts and creating the NFTs on the blockchain. The aim is to provide low-threshold access to the technology.
In a first phase, the NFTs would be generated on the Ethereum blockchain. This has proven to be the dominant infrastructure for NFTs; Since the update of the proof-of-stake consensus mechanism, Ethereum has also gained energy efficiency, the release continues.
Buyers must go through the KYC process
The NFTs are sold through a customizable sales page on the launch pad. Companies can decide for themselves whether to sell their NFTs at predetermined prices or to auction them.
Buyers can purchase NFTs with a credit card, but must first go through an identification process (know your customer process) so that potential money laundering risks can be adequately addressed.
Bank pays the gas costs
According to the announcement, the crypto bank will ensure that the applicable tax consequences are taken into account when selling NFTs, in particular with regard to VAT. In return, Sygnum fully assumes the transaction fees (“gas fees”) that are common on the Ethereum blockchain. This, according to the bank, simplifies the customer experience for buyers and reduces their costs.
Market researchers from Market Decipher expect the collectibles market to reach $402 billion by 2021 and grow to more than $1 trillion by 2032. According to Sygnum, about a third of this should come from NFTs.