Jul 30, 2021

Right Place For The Business - A Key Decision

Deciding where to settle for a start-up business is a key decision and critical to determine early success or failure.

aXedras has done its homework, analyzed and evaluated. All signs led to settle in the center of the leading Blockchain/DLT valley, in the heart of the world’s precious metal trade and refineries and in a country leading innovation and keen to foster and revolutionize the technology and finance industry.

Therefore, working out of Switzerland supports aXedras’ ambition to become the global “Know-Your-Asset”, digital technology standard and leader of high-value physical asset industries, with a starting point in the precious metal industry.

Switzerland offers:

1. World’s leader in fostering innovation – high-tech and Blockchain

Focus on R&D and innovation with a strong high-tech affinity. Blockchain/DLT projects and companies have settled in the Crypto Valley which counts among the leaders in the world hosting 11 unicorns.

It is the first country worldwide to have issued a “DLT/Blockchain Legislation Act”, a law that enables the complete digitization of Swiss Capital Markets. It's a framework and legal basis for the issuance, trading and ownership of digital assets. Hence, this is the basis for the aXedras ecosystem and the digital twin of the precious metal.

2. A central base in the global precious metal industry More than 50% of the precious metals produced globally are refined in Switzerland and almost a quarter of the world’s gold trade flows through Switzerland – the right place to be to digitize the precious metal value chain.

3. Home of the high-end product - luxury and wealth industry The high-end product industry like watches and jewelry will profit from a digitized ecosystem. As the world’s leading and most competitive financial centers (leader in wealth management), it manages around one quarter of the world's cross-border assets. Fintech companies are on the rise with two licensed and certified crypto-banks and many challengers in the digital asset space.

4. ESG sensitivity and focus ESG has become the focus point of consumers, investors and producers, hence transparency and immutable documentation is sought after.

5. Political stability, top infrastructure

Switzerland provides to aXedras strong advantages with regards to legal security, independent currency, a neutral government, a stable financial market, modern regulatory framework and a world-leading infrastructure.

6. Central geographic location

Located in the heart of Europe – fast connected to the global market

1. World’s leader in fostering innovation – high-tech and Blockchain

Made in Switzerland is recognized worldwide as leaders in the areas of research and knowledge. Switzerland is top in the world when it comes to innovation, according to an index by the World Intellectual Property Organization (WIPO). It spends more on R&D per capita and is among the countries which produce the most Nobel laureates per capita. And it scores as No. 1 in the IMD World Competitiveness Ranking 2021.

Switzerland’s innovation is secured in the long term by the presence of renowned and globally connected universities and internationally leading R&D labs in the private sector, e.g., Disney Research, Google, and IBM.

Switzerland staying at the top for DLT and Blockchain

Switzerland was the innovator of the internet back in 1989 and is now one of the leaders in developing the “next generation of the internet” – the Blockchain and DLT (distributed ledger technology) industry.

The recent EU Blockchain Ecosystem Development Report states: «Switzerland is one of the most advanced nations when it comes to blockchain and crypto-assets, not only in Europe, but also globally». It has been called the Crypto nation and is home of the Crypto Valley hosting 960 companies based on the DLT and Blockchain technology. The Crypto Valley has continued a dramatic rise in 2021, following the digital transformation trend in the world. It counts 11 unicorns (i.e., projects valued at more than $1b) such as Ethereum, Cardano, Polkadot, Diem (ex. Libra in Genevea). The top 50 have a valuation of US$255b.

Clearly, digital assets are making huge strides towards wider adoption. At the same time, an increasing number of reputable family offices, wealth managers and private banks entered the industry at a rapid pace. Family offices were early adopters of this new asset class. Many private banks also saw an uptick of digital assets by a younger audience, often serving as the next generation of existing clients.

The first DLT law

As of 2021, Switzerland is the first country in the world that has a “Blockchain law”. It now lets tokenized securities trade on a blockchain with the same legal standing as traditional assets. Swiss lawmakers decided not to create a completely new regime but adapted legislation to draft specific features of DLT onto the existing legal framework.

The amendments enable the complete digitization of Swiss Capital Markets. The result is the world’s leading regulatory framework and legal basis for the issuance, trading and ownership of digital assets, including securities.

2. A central base in the global precious metal industry

Switzerland takes a larger share of the global gold trade than any other country. More than 50% of the world’s gold is refined in Switzerland. Gold is the second largest export good of Switzerland, only surpassed by pharma. Almost a quarter of the gold trade worldwide is flowing through Switzerland.

3. Home of the high-end product - luxury and wealth industry

Switzerland covers a variety of industries, due to its proven innovative, dynamic and unique culture of precision. The economy is service-oriented, but also has a strong, export-focused industrial sector. Swiss watches, which are a product of this sector, are known worldwide for their high quality. Strong focus is on pharmacy, finance industry, life sciences, high-tech, precision technology, machinery, ICT, cleantech & financial services, high-class watch industry and food.

Digital transformation has pushed established financial institutions in Switzerland to spear head new service offering for digital assets. As the world’s leading financial center and a pillar of the Swiss economy, it is key to stay at the forefront of the digital revolution. Fintechs in Switzerland are on the rise and challenge the industry. Two crypto banks have already received their banking license and are swiftly enhancing their digital service offering globally.

4. Environment Social Government (ESG) sensitivity

Switzerland is increasingly known for its stance on sustainable development and preserving the environment. In 2017, Switzerland was named one of the top five countries achieving the UN’s Sustainable Development Goals the fastest.

For Switzerland’s numerous pension funds, the last year engagement, voting and impact investing have grown significantly for asset owners, as HNW/private bank investors also sharpen their ESG attention.

For the large precious metal market, it is a focus on Switzerland to ensure transparency of the origin and provenance of the precious material. Therefore, they have started the Swiss Better Gold Association (SBGA) initiatives.

SBGA partners with the Swiss State Secretariat for Economic Affairs (SECO) in the Better Gold Initiative for Artisanal Small-Scale Mining (ASM). The SBGA improves working and living conditions in ASM communities and facilitates the creation of responsible supply chains from ASM operations to the Swiss market.

Switzerland supports responsible financing and investment decisions that take account of their impact on the environment and society.

5. Political stability, top infrastructure

The Swiss citizen-controlled political system is neutral, stable, predictable and highly responsive to its citizens which ensures social peace. Switzerland’s decentralized and bottom-up political culture is a natural fit for the decentralized, bottom-up blockchain technologies of the future.

Switzerland follows sound economic policies, including a strong currency with by far the highest GDP per capita.

Given its world-leading, centuries-old rule of law institutions and culture of privacy, Switzerland has a strong tradition of legal security, predictability and protection of intellectual and property rights.

Switzerland has world-leading infrastructure in energy, transportation, telecommunications, financial services, education, health care, environment, safety and technological innovation.

6. Central geographic location

Switzerland is in the center of Europe, the same time zone as Africa and halfway between the Americas and Asia, with excellent air, rail, road and ocean connections. Switzerland has an extensive network of free trade agreements with all the major trading nations.

The geographical location of the three international airports in Zurich, Basel and Geneva enables businesspeople and travellers to reach all major European capitals in two hours by plane.