CMS advises Float on the issuance of a Tokenized Debt Instrument

Float worked together with Zurich based banking partner Sygnum Bank and UK senior lender Fasanara Capital, one of Europe’s largest FinTech credit funds, to tokenize and issue the debt instrument within a fully regulated environment.

The instrument labelled FLOAT1 is one of Europe’s first private debt asset tokens, and a great example of a tokenized financial instrument issued under the landmark Swiss DLT legal framework. The FLOAT1 token offers investors access to a diversified portfolio of private SME loans to European SaaS and technology businesses. It means that by way of the token, they brings illiquid real-world financial assets onto the Polygon Labs blockchain to make them accessible to investors and tradeable.

A team of CMS Switzerland and Luxembourg, lead by partner Matthias Kuert (capital markets/fintech & blockchain, pictured), advised the Swedish Float Finance on legal and tax aspects of a tokenized debt instrument issued under Swiss law by a Luxembourg Special Purpose Vehicle. The Swiss team also included partner Tina Balzli (fintech & blockchain), Ferdinand Blezinger (senior associate, corporate/ M&A),  Alina Fancelli (associate, capital markets), partner Mark Cagienard (tax) and David Schuler (senior associate, tax).