- Sygnum AG noticed significant interest in crypto transactions from financial institutions.
- Bloomberg says Sygnum’s new brokerage business in Singapore might benefit from increased demand.
- Sygnum CEO to offer crypto custody & broker-dealer services in Singapore.
Sygnum, which operates a digital-asset bank in Switzerland and provides asset management services in Singapore is witnessing significant interest in cryptocurrency transactions from various financial entities such as fund houses, family offices, and institutions.
According to Bloomberg, this surge in demand is anticipated to enhance the revenues generated by their newly established brokerage business in Singapore.
Sygnum AG has recently obtained preliminary approval from the Monetary Authority of Singapore. This approval grants them a license to offer digital token brokerage services. Gerald Goh, the co-founder, and CEO of Sygnum Singapore, stated that the company aims to capitalize on the global increase in demand from corporations and institutions seeking regulated platforms for cryptocurrency trading.
Moreover, Goh shared during an interview,
A lot of our demand right now is coming from web3 or crypto fund managers who as part of their regulated fund management activities, have a business reason to be buying or selling digital assets, including cryptocurrencies.
Goh also mentioned that Sygnum’s Swiss bank experienced a surge in interest from potential clients in the aftermath of the US bank failures.
As a result, client assets, including both digital tokens and fiat money deposits, reached an “all-time high” of over 3 billion Swiss francs ($3.3 billion) by the end of May. Goh further stated that the demand for regulated crypto financial institutions has increased following the US banking crisis, and obtaining the Singapore license will enable them to cater to such clients.
According to Goh, Sygnum has plans to provide crypto custody and broker-dealer services in Singapore. The brokerage will facilitate the matching of quotes from its clients by consolidating bid-offer prices from market makers through the bank located in Switzerland.
While the ultimate license in Singapore will permit Sygnum’s customers to engage in trading and perform transactions involving both crypto and fiat currencies, it will not encompass on and off-ramping services.
Goh clarified that on and off-ramping refers to the ability to convert fiat money into cryptocurrencies and vice versa. He further mentioned that Sygnum Bank in Switzerland will act as the counterparty for the brokerage business of the Singapore entity.
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