Blockchain
The Swiss financial industry has successfully traded and settled tokenized investment products
For the first time, key players in the Swiss financial industry successfully developed and tested a novel settlement mechanism for tokenized investment products on a public blockchain testnet infrastructure. A smart contract, developed by the Capital Markets and Technology Association (the CMTA), allows for streamlined processes, reduces complexity, raises security, and eliminates counterparty risks from trades. The CMTA’s proof of concept marks a milestone for the Swiss financial industry.
The proof of concept involves:
- the issuance of tokenized investment products recorded on an Ethereum test blockchain,
- the trading of these products in Swiss francs on a regulated Swiss securities exchange, and
- the settlement of trades through a smart contract developed by the CMTA.
These three distinct operations – issuance, trading and settlement – all happened within hours, when they take days to unfold in a traditional financial environment.
“We are very proud to have developed this groundbreaking mechanism with numerous partners from the financial and technology industries,” says Jacques Iffland, Chairman of the CMTA. “It will enable the industry to increase efficiency, simplify cross-border settlement and improve the quality of service. And customers will benefit from the efficiency gains.”
Vontobel and Pictet each issued an actively managed equity certificate representing a basket of equities, while Credit Suisse issued a structured note, which were associated with digital tokens recorded on an Ethereum test blockchain, a process commonly referred to as “tokenization”. These securities were then traded on the platform of BX Swiss, a FINMA regulated Swiss securities exchange. The trades were settled bilaterally on the blockchain. To do so, the participants used an on-chain mechanism that secures the parties’ obligations. The settlement in fiat currency (Swiss franc) was made possible by an application called DLT2Pay, a product of targens, that connects the blockchain with the Swiss Interbank Clearing (SIC), the real-time gross settlement (RTGS) payment system of the Swiss National Bank. The proof of concept leveraged the CMTA’s standard token format and smart contract (CMTAT), and another smart contract that replicates the delivery-vs-payment functionality of traditional settlement systems. The creation, security aspects and technical operation of the smart contracts, were carried out under the leadership of Taurus, whose technology was used to issue and manage the structured products across their full lifecycle.
The proof of concept was developed and carried out under the aegis of the CMTA, with the support of representatives of BX Swiss, Credit Suisse, Homburger, Lenz & Staehelin, METACO, Pictet, targens, Taurus, UBS and Vontobel.
The proof of concept lays the foundation for an alternative Swiss post-trade infrastructure that functions without central parties (central counterparty and central securities depositary) and enables participating banks to benefit from cost advantages along the entire value chain of securities transactions (issuance, settlement and custody).
Daniel Gorrera, Head Digital Assets at Credit Suisse, said: “The transactions carried out today clearly establish that products tokenized on a public blockchain can be traded on regulated trading platforms and that the settlement of transactions on tokenized products can be carried out in fiat currencies without creating any counterparty risk. The successful proof of concept is a crucial first step for unlocking the benefits of tokenization in the future.”
Steve Blanchet, Head of Group Tech Strategy and Innovation at Pictet said: “Tokenization is a key strategic element for the future of asset management. It enables issuers to streamline the processes that govern the creation of investment products in a way that is currently not achievable with traditional infrastructures, and to drastically reduce time-to-market. With the solutions we tested in the proof of concept, processes that are currently matters of days can be reduced to a few hours, and eventually down to minutes or less.“
Anna-Naomi Bandi-Lang, Structuring – Credit Solutions at UBS Investment Bank said: “Tokenization has many use cases, but for it to become an established feature of modern financial markets, the ability to trade tokenized products in major currencies and through regulated trading venues is key. The CMTA’s proof of concept demonstrates that there is a path to achieve this goal.”
Marco Hegglin, Chief of Staff Structured Solutions & Treasury at Vontobel, said: “This proof of concept is just a first step on the way to defining a new standard for structured products in the form of a smart contract. Structured products are not only innovative products, they are also predestined for state-of-the-art technology. With a fully automated smart contract covering the entire lifecycle, the possibilities that can be expressed in pure code language are almost unlimited, and the blockchain technology can help designing new generations of financial products.”
Matthias Müller, Head of Markets at BX Swiss, said: “First of its kind, this proof of concept demonstrated that trades carried out on-exchange can be settled on a public blockchain directly between participants. It is no longer necessary for the parties to secure a transaction by transferring tokens or cash to the exchange ahead of trade. This is a significant advantage in terms of speed, cost, and risk management. The smart contract used for the settlement eliminates the counterparty risk that would exist if the cash leg and the asset leg of the transactions were completed independently from one another. The new regulatory regime for DLT-based trading platforms will allow BX Swiss to take full advantage of these developments.”
Jean-Philippe Aumasson, co-founder of Taurus SA and Chair of the CMTA’s Technology Committee, said: “We are delighted to see a consensus building around the use of open standards for DLT-based market infrastructures and to see that the CMTA’s smart contracts are being recognized as reliable technology in this respect. Using collaboratively developed open-source smart contracts reduces development and due diligence costs for participants and contributes to the reliability and efficiency of the Swiss fintech ecosystem.”
Samuel Bisig, Business Development and Product Manager at targens GmbH in Stuttgart, said: “targens’ DLT2Pay solution provides the missing link between a DLT/blockchain and a payment transaction protocol (here: central banks’ clearing systems) for the cash settlement of securities transactions. As long as central bank digital currencies (CBDCs) are not available, such a “trigger solution” is key if digital assets are to be traded otherwise than in private cryptocurrencies.“
Blockchain
Blocks & Headlines: Today in Blockchain – April 22, 2025 (Activity‑Weighted Consensus, Pectra Upgrade, Yoki Legacy, Verae–Evercycle, Earth Day)
As blockchain technologies mature and diversify, today’s highlights underscore a burgeoning shift: from consensus innovation and protocol upgrades to strategic partnerships and sustainability imperatives. In this edition, we unpack five pivotal developments shaping Web3, DeFi, NFTs, and enterprise-grade blockchain adoption:
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Activity‑Weighted Consensus Steals the Show at Paris Blockchain Week
-
Ethereum’s Pectra Upgrade: The Next Evolution in Scalability
-
Astar’s Yoki Legacy Launches on Sony’s Soneium Blockchain
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Verae and Evercycle Forge Blockchain‑Enabled ITAM Partnership
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Earth Day 2025: Why an Efficient Blockchain Is a Smart Energy Choice
Together, these stories reveal key trends—innovative consensus models, cross‑chain interoperability, tokenized asset management, and an urgent focus on energy efficiency—driving blockchain’s trajectory in 2025.
1. Activity‑Weighted Consensus Steals the Show at Paris Blockchain Week
At the recent Paris Blockchain Week Conference, the concept of Activity‑Weighted Consensus (AWC) emerged as a potential game‑changer for network security and governance. Unlike Proof‑of‑Work (PoW) or Proof‑of‑Stake (PoS), AWC allocates block‑production rights based on a node’s continuous on‑chain engagement metrics—transaction relaying, smart‑contract interactions, and decentralized application hosting. Advocates argue that this model:
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Aligns Incentives with Ecosystem Health: Nodes that actively support dApps, relays, and DeFi protocols earn governance weight, dissuading passive stake‑hoarding and promoting network utility.
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Enhances Security: By requiring sustained activity rather than one‑time stake deposits, AWC makes long‑term collusion and stake concentration more costly and detectable.
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Fosters Decentralized Governance: Community participants demonstrating developer contributions or sustainable validator uptime can gain voting power, democratizing protocol upgrades and treasury decisions.
During the Paris sessions, leading research teams unveiled prototypes on testnets demonstrating up to 60% reduction in attack surface compared to vanilla PoS chains, without compromising block‑finality times. Critics, however, caution that accurately measuring “useful activity” demands robust oracles and could introduce new attack vectors if measurement data is manipulated.
Opinion: Activity‑Weighted Consensus represents a vital next step in consensus algorithm innovation—bridging the gap between security, decentralization, and real‑world utility. While the implementation complexity is nontrivial, protocols prioritizing ecosystem engagement could see higher network effects and healthier token economies. If designed with transparency and anti‑gaming safeguards, AWC could become a mainstream alternative by 2026.
Source: Cointelegraph
2. Ethereum’s Pectra Upgrade: The Next Evolution in Scalability
Ethereum’s core developers have officially detailed the ambitious Pectra Upgrade, slated for Q4 2025. Building upon the success of past hard forks, Pectra aims to tackle two pillars: throughput and data availability. Key components include:
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Rollup‑Centric Sharding: Rather than full‑state sharding, Pectra introduces “data shards” optimized for rollups, increasing per‑shard throughput to 10 MB per block—3× current levels—while aggregating rollup proofs on‑chain.
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On‑Chain Data Availability Sampling (DAS): Incorporates KZG commitments to enable light clients to verify data availability without downloading entire blocks, bolstering security against data‑withholding attacks.
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EIP‑4990: Prover Optimization: Introduces optimized precompile contracts to accelerate zk‑SNARK and zk‑STARK proof verification by up to 40%, reducing gas costs for privacy and scaling solutions.
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Native Token Recycling: Pectra reallocates a portion of burnt ETH (post‑EIP‑1559) to a “Scaling Fund” administered via on‑chain governance, seeding grants for L2 rollups and data‑availability networks.
Analysis: Pectra’s rollup‑centric vision reaffirms Ethereum’s commitment to being the settlement layer for a multi‑chain ecosystem. By offloading execution to specialized rollups while securing data integrity on L1, Ethereum anticipates 50,000 TPS across aggregated rollups, vastly improving DeFi composability and reducing gas fee volatility. Critics note the increased client complexity and potential centralization risks if DAS providers consolidate.
Implications: For DeFi protocols, NFT marketplaces, and application developers, Pectra could slash transaction costs, enabling new use cases—from micro‑transactions to real‑time gaming—while maintaining the security assurances of Ethereum’s vast validator set. The Scaling Fund’s token recycling mechanism also sets a precedent for sustainable ecosystem funding.
Source: Gadgets360
3. Astar’s Yoki Legacy Launches on Sony’s Soneium Blockchain
In a landmark partnership bridging gaming and blockchain, Astar Network announced that Yoki Legacy, its flagship play‑to‑earn RPG, will deploy on Sony’s Soneium Blockchain starting May 2025. This collaboration offers:
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Cross‑Chain Interoperability: Utilizing Astar’s XCM (Cross‑Consensus Message) protocol, Yoki Legacy assets—NFTs, in‑game tokens, and governance rights—can transfer seamlessly between Astar (Polkadot) and Soneium, enabling multiverse gameplay.
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Eco‑Friendly Consensus: Soneium employs a hybrid PoS‑PoA model with carbon offsets verified on‑chain, aligning with Sony’s commitment to sustainability.
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Developer Toolkits: Joint SDKs allow game studios to tap both networks’ developer ecosystems, sharing middleware for asset minting, royalty management, and composable NFT design.
Opinion & Impact: This alliance signals Web3 gaming’s maturation, as major entertainment brands partner with public blockchains to reach broader audiences. Soneium’s consumer electronics pedigree and global distribution channels could propel Yoki Legacy into mainstream consoles—validating blockchain gaming beyond niche communities. Furthermore, asset interoperability across Astar and Soneium paves the way for unified gaming economies, where items retain value across genres and platforms, potentially reshaping in‑game monetization models.
Source: VentureBeat
4. Verae and Evercycle Forge Blockchain‑Enabled IT Asset Management
Industrial IoT specialist Verae and sustainability platform Evercycle have launched a blockchain‑powered IT Asset Management (ITAM) solution targeting circular‑economy compliance. By merging Verae’s device telemetry with Evercycle’s digital product passports on a Hyperledger Fabric network, the partnership offers:
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Provenance Tracking: Each hardware component—servers, routers, laptops—receives a tamper‑proof record of manufacture, warranty, maintenance, and end‑of‑life recycling status.
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Regulatory Compliance: Automated reporting modules help enterprises meet EU’s Waste Electrical and Electronic Equipment (WEEE) directives and emerging Right to Repair regulations.
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Tokenized Incentives: “Green Credits” are issued when devices are refurbished or recycled according to verified processes, tradable within corporate sustainability marketplaces.
Analysis: As enterprises grapple with e‑waste—projected to reach 74 million metric tons by 2030—blockchain‑backed ITAM offers both auditability and circular‑economy incentives. By tokenizing responsible disposal, companies can transparently showcase ESG compliance to investors and regulators. Critics warn of integration challenges with legacy procurement systems and potential data privacy concerns if supply‑chain partners refuse on‑chain transparency.
Strategic Takeaway: This partnership exemplifies how permissioned blockchains can underpin enterprise sustainability efforts, harmonizing environmental goals with operational efficiency. For IT procurement and finance teams, on‑chain asset management reduces manual audits, accelerates warranty claims, and unlocks new value streams through tokenized recycling incentives.
Source: PR Newswire
5. Earth Day 2025: An Efficient Blockchain Is a Smart Energy Choice
In honor of Earth Day 2025, CoinGeek highlights how next‑gen blockchains—from Proof‑of‑History in Solana to Nakamoto PoA hybrids—are slashing energy consumption compared to legacy PoW networks. Key metrics include:
-
Energy Efficiency: Modern PoS chains consume 99.9% less energy per transaction than Bitcoin, with some layer‑2 rollups achieving sub‑gram carbon footprints per transfer.
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Carbon‑Offset Innovations: Protocols like Algorand and Cardano integrate on‑chain carbon oracles that automatically retire carbon credits proportional to network activity.
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Green Data Centers: Validators increasingly deploy in solar‑ and wind‑powered facilities, with projects like EcoChain offering renewable‑energy staking pools.
Opinion: As mainstream scrutiny intensifies around crypto’s environmental impact, energy‑efficient protocols are not just eco‑friendly—they’re competitive differentiators. Enterprises and institutional investors demand sustainability assurances; blockchains failing to address carbon footprints risk regulatory backlash and reputational damage. By spotlighting energy‑optimized consensus and renewable‑powered infrastructure, the industry can redefine itself as a driver of green innovation.
Source: CoinGeek
Conclusion: Mapping the Blockchain Horizon
Today’s briefing underscores three overarching themes propelling blockchain forward:
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Consensus Reinvention: From activity‑weighted protocols to energy‑efficient hybrids, networks are refining consensus to boost security, scalability, and sustainability.
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Cross‑Chain & Enterprise Integration: Interoperability—whether via rollup‑centric upgrades, cross‑chain gaming partnerships, or permissioned frameworks for ITAM—enables seamless value flows across disparate ecosystems.
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Environmental & Regulatory Alignment: As global frameworks converge around ESG and circular‑economy mandates, blockchain applications that embed sustainability and compliance at their core will capture both market share and stakeholder trust.
For developers, enterprises, and investors alike, staying ahead means embracing not only technical breakthroughs but also governance models and partnerships that align blockchain with real‑world needs. Tune in tomorrow as we continue tracking the decentralized revolution—one block at a time.
The post Blocks & Headlines: Today in Blockchain – April 22, 2025 (Activity‑Weighted Consensus, Pectra Upgrade, Yoki Legacy, Verae–Evercycle, Earth Day) appeared first on News, Events, Advertising Options.
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