Crypto Bank Sygnum Gets Nod from Singapore Regulator

Key Insights:

• Swiss crypto bank Sygnum Bank gets in-principal approval to expand digital asset product offering in Singapore.
• Singapore continues to evolve as Asia’s digital asset hub, with Temasek leading the way.
• A clear regulatory framework has been pivotal in Singapore’s evolution as a center of innovation.

Swiss crypto bank Sygnum Bank is the world’s first digital assets bank. The bank enables clients to invest in the digital asset economy safely and securely. Founded in 2017, Sygnum established itself in Switzerland and Singapore with a Swiss banking license and a Singapore asset management license.

Sygnum Bank Solutions Aligned with Web3

Through the Swiss banking license and Singapore CMS license, Sygnum offers several services.

Services on offer include:

• Accounts, custody & staking: Clients can store digital assets with ‘institutional-grade trust.’
• Asset management: Offers diversified digital asset investment products.
• B2B banking service: Provides a full suite of services, including accounts, payments & custody, brokerage, tokenization, lending, and asset management in a one-stop-shop offering.
• Brokerage: Supports 24/7 trading of digital assets securely and seamlessly.
• Lending: Lombard loans increase fiat liquidity against digital assets, including BTC and ETH.
• Tokenization: This allows issuers to raise capital through tokenized securities issuances. The offering gives Sygnum Bank clients access to an increased range of investible assets.

Sygnum Gets Nod to Expand Digital Asset Services

Having held a Singapore Capital Markets Services (CMS) license for asset management since 2019, Sygnum Bank announced today in-principal Monetary Authority of Singapore (MAS) approval for three additional regulated activities under its CMS license.

📰 📣 News >>> Sygnum Singapore secures in-principle approval to expand regulated activities, enabling fully-regulated tokenization solutions for the growing Web3 ecosystem.

📰 Read our press release here >>> https://t.co/1zv39wYcER#FutureFinance #digitalassetsbank #web3 #aua

— Sygnum Bank (@sygnumofficial) March 8, 2022

The three additional activities include:

• Corporate finance advisory services.
• Dealing in capital market products.
• Provide custodial services.

Sygnum Bank will initially focus on fund unit tokenization and its newly launched SBI-Sygnum-Azimut Digital Asset Opportunity Fund.

Looking ahead, Sygnum plans to:

• Provide corporate finance advisory services to Web3 platforms and digital creators.
• Securitize rare digital collectibles, NFTs, and Metaverse assets, including virtual LAND and in-game items.

Sygnum Approval a Boost for Singapore Hub Aspirations

Singapore and the MAS have been particularly active in the digital asset space. Despite mixed regulatory signals, the Republic’s status as a global digital asset hub continues to evolve.

In 2021, Binance withdrew its Singapore application for reportedly failing to meet KYC and AML requirements. Since then, the MAS has also banned crypto exchange advertising in public.

Despite the stringent rules, the crypto market eyes Singapore as Asia’s crypto-asset hub. Regulatory uncertainty has plagued some major digital asset jurisdictions and crypto players.

By contrast, the Singapore government has provided a regulatory framework that embraces digital assets with the appropriate level of oversight.

This week, Singapore government investment vehicle Temasek hit the crypto news wires. Temasek reportedly led a fresh fundraising round for the Australian NFT startup Immutable. A $200m funding round took the value of Immutable to $2.5bn, with investors including Tencent Holdings, Mirae Asset, and Declaration Partners, among others.

In February, Temasek had led a $200m round for Amber Group, a global digital assets platform.

The Temasek involvement in leading fundraising campaigns is likely a strategic one as Singapore looks to further cement itself as a global digital asset hub.