Sygnum, which operates a digital asset bank in Switzerland and offers asset management in Singapore, recently received approval from the Monetary Authority of Singapore for a license that allows it to offer digital token brokerage services.
Swiss Bank's Digital Token Client Assets Increase
Gerald Goh, co-founder and CEO of Sygnum Singapore, said they are seeking to continue the global demand growth from companies and institutions seeking regulated crypto trading centers.
Banking options for crypto firms have narrowed significantly after the collapse of Silvergate Capital and Signature Bank in the US in March, as traditional lenders have become more cautious about hiring clients linked to the volatile digital asset industry.
Goh said that after US bank bankruptcies, Sygnum's Swiss bank saw a surge in interest from potential customers.
He noted that client assets, which include fiat deposits as well as digital tokens, had reached an “all-time high” at over CHF 3 billion ($3.3 billion) at the end of May.
“After the US banking crisis, the demand for regulated crypto financial institutions has increased and the Singapore license will help us serve such clients,” Goh said.
According to Goh, Sygnum plans to offer crypto custody and broker-dealer services in Singapore. He said the brokerage house will match offers from its clients by collecting offers from market makers through the bank in Switzerland.
Goh said that the final license in Singapore will allow Sygnum customers to trade, send and receive crypto and fiat currencies, but will not cover on-ramp services, referring to the ability to convert fiat money to cryptocurrencies and vice versa.
*Not investment advice.
