- Sygnum has obtained a license to broaden its digital asset services in Liechtenstein.
- This move is in line with the forthcoming MiCA regulations.
- The decision follows the bank’s impressive profitability reported in its H1 2024 results.
Sygnum, an international digital asset bank rooted in Switzerland and Singapore, has recently secured a license to function as a digital asset services provider in Liechtenstein through its subsidiary, Sygnum Europe AG, which operates in the region.
Sygnum’s EEA Expansion
As stated in Sygnum Europe’s press release on Monday, the bank is now registered with Liechtenstein’s Financial Market Authority (FMA), in accordance with the Token and Trusted Technology Service Provider Act (TVTG) of the country. Although Liechtenstein is not a member of the EU, its digital asset licensing aligns with the impending implementation of the Markets in Crypto-Assets Regulation (MiCA) next year.
TVTG provides a thorough framework for the FMA’s regulation of blockchain and tokenized asset services in Liechtenstein, aimed at protecting users engaging in digital legal transactions while outlining the rights and duties of trusted technology (TT) system service providers.
This license enables Sygnum to strategically enhance its footprint across the European Economic Area (EEA), allowing the bank to offer a variety of digital asset services to professional and institutional clients, including crypto brokerage, custody, and business-to-business (B2B) banking.
“We are thrilled to announce Sygnum’s expansion into Liechtenstein, a nation recognized for its progressive stance on financial and digital asset innovations,” commented Sygnum’s Chief Clients Officer Martin Burgherr. “Our CASP registration in Liechtenstein sets the stage for a substantial expansion of our regulated presence in the EU, the world’s largest trading ecosystem.”
Rising Profitability
Sygnum’s latest news follows an impressive financial report for the first half (H1) of 2024, revealing that the bank doubled its crypto trading volume and increased its derivatives trading by 500% compared to the same period in the prior year. Additionally, Sygnum experienced a 360% rise in its lending volume and its Ethereum (ETH) staking-as-a-service (StaaS) increased to 42%, surpassing the global average by 15%.
Furthermore, the bank reported $4.5 billion in client assets, a half-billion increase since January. It also achieved a core equity capital of $125 million and a business valuation of $900 million following a successful $40 million funding round earlier this year.
Sygnum’s Asian Expansion
Sygnum’s multifaceted strategy to leverage its rising profitability also extends to its operations in Asia. After expanding in Abu Dhabi and Luxembourg, the Singapore-based branch is set to enhance its presence in Hong Kong, which is emerging as a key crypto hub in the region.
In addition to increasing its number of branches and workforce, Sygnum has formed partnerships with several prominent entities in the banking sector, including PostFinance, PKB, Kantonalbank, Bordier, Bison, ZugerKB, SocGen Forge, LuzernerKB, and VZ Depotbank.
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