Swiss-based crypto banking powerhouse Sygnum has recently made significant strides in its growth strategy by securing a crypto license in Liechtenstein. According to an announcement made on September 23, the company’s local subsidiary, Sygnum Europe AG, is now registered with the Financial Market Authority (FMA) of Liechtenstein under the Token and Trusted Technology Service Provider Act (TVTG). This recognition allows Sygnum to offer an array of regulated digital asset services, among them brokerage, custody, and business-to-business (B2B) banking services.
By establishing a foothold in Liechtenstein, Sygnum positions itself to benefit from the country’s regulatory alignment with the European Union (EU), especially in light of the forthcoming Markets in Crypto-Assets Regulation (MiCA). This landmark regulation, recently ratified by the EU, aims to cultivate a safe and innovative digital asset landscape that protects users while facilitating advancements within the industry. With a framework that permits licensed firms to operate across all 27 EU member states and the EEA, Sygnum’s Liechtenstein license effectively sets the stage for a wider expansion across 30 distinct EU and EEA markets expected by early 2025.
The implications of this licensing achievement are profound. Martin Burgherr, Sygnum’s Chief Clients Officer, articulated the importance of this registration, emphasizing how it unlocks considerable growth potential in the EU—identified as the largest trading bloc in the world. In addition to EU-centric ventures, Sygnum is making overtures toward the dynamic Hong Kong market through its Singapore-regulated digital asset services platform. This multifaceted approach not only diversifies the company’s reach but also demonstrates a keen understanding of varying regional regulatory environments.
Complementing these licensing efforts is Sygnum’s promising financial trajectory. In January 2024, the firm raised over $40 million in a funding round that was met with high demand, bringing its valuation to approximately $900 million. This solid financial foundation is bolstered by substantial core equity capital exceeding $125 million. The company has also explored strategic alliances, forming partnerships with entities like PostFinance, facilitating crypto services and tokenization initiatives alongside Hamilton Lane and Fidelity Investments.
Sygnum’s recent developments epitomize a calculated and ambitious expansion strategy. By leveraging its Liechtenstein license, aligning with regional regulations, and pursuing aggressive market penetration, Sygnum not only strengthens its position in the digital asset world but also sets a template for success in the rapidly evolving crypto landscape. As the industry shifts towards greater regulation and legitimacy, Sygnum’s proactive posture—evidenced by its operational execution and partnerships—marks it as a significant player capable of navigating and thriving in a complex regulatory environment. Moving forward, the bank’s trajectory will be monitored closely, given its potential to shape future trends in the burgeoning sector of crypto banking and digital asset management.