Digital Asset Fund Sygnum Bank has announced a partnership with Swiss sculptor David Bafogi to issue 6,000 Art Security Tokens, or AST, through its new venture, Victory Works.
The focus is on the finals of three international competitions – the 2010 FIFA World Cup to be held in South Africa; 2014 FIFA World Cup hosted by Brazil; The host of the 2018 FIFA World Cup Russia is a work of art celebrating the achievements of legendary players such as Oliver Kahn, Lionel Messi, Ronaldinho and Zinedine Zidane, among others, with their written autographs.
With a total valuation of CHF 6 million, equivalent to USD 6.525 million, the three assets will be offered exclusively to Sygnum Bank’s professional and institutional clients at an auction starting this April. AST holders will receive a pro rata share of the sale in proportion to their amount of ownership.
According to an official statement, Victory Works intends to reserve about half of the AST for future endeavors, as well as pledge 20% of all proceeds to charities supporting the livelihoods of children in developing countries.
Cointelegraph reached out to Victory Works to learn more about the company’s vision for using 50% of AST held, as well as whether they have identified any specific children’s charities or reasons for donating 20% of net income.
They stated, “When the final token auction sale is completed, each token holder will receive a share of the proceeds from that sale according to the number of tokens they own. After the completion of the life cycle, the tokens will be decommissioned (“burned”), including tokens owned by Victory Works AG.”
“A charitable organization dedicated to this project, based in Switzerland, will be established to ensure that the use of funds for charitable purposes can be tracked and verified from the first step to the last… the specific individual humanitarian projects that will be supported… at this moment is being executed.”
Sygnum Bank has a proven track record in cryptocurrencies and has gained notoriety in European markets for its progressive stance on digital asset adoption and positive regulatory engagement.
In September 2020, the company received approval from the Swiss Financial Supervisory Authority (FMSA) to offer a range of digital asset trading operations, opening up new investment opportunities for its Swiss franc (DCHF) digital stablecoin.
Most recently, in July 2021, Sygnum became the first global banking institution to participate in Ethereum, offering up to 7% Annual Interest Yield (APY) and aiming to incentivize consumer use of decentralized financial applications (DeFi).
According to Sygnum, as a result of their positive relationship with regulators, AST Victory Works will be “fully recognized under the new Swiss DLT legislation on the Sygnum Desygnate token platform.” They also provided further clarification regarding the “investment horizon of two to three years” in a press release, stating that:
The life cycle of this investment opportunity is limited. The investment horizon describes the first phase, 2-3 years after the launch of the first token. After that, an exit will be initiated and the main works of art will be auctioned off. This will “burn” all tokens and distribute the profit among all token holders in proportion to their assets.