Sygnum AG, the Swiss digital-asset bank, witnesses robust crypto demand, potentially expanding brokerage operations in Singapore.
Sygnum AG, a Swiss digital-asset bank, sees strong demand for crypto transactions from fund houses, family offices, and institutions.
This is expected to boost revenues for their newly established brokerage business in Singapore after obtaining an in-principle approval from the Monetary Authority of Singapore for a digital token brokerage license on June 13.
Sygnum AG Secures MPIL Approval:
Sygnum Singapore’s regulated crypto brokerage service is set to launch following the activation of the Major Payment Institution Licence (MPIL), as stated in a press release.
The demand for their services is primarily driven by web3 and crypto fund managers who engage in regulated fund management activities and require digital asset transactions, including cryptocurrencies, for business purposes, according to Gerald Goh, co-founder and CEO of Sygnum Singapore.
Sygnum aims to provide crypto custody and broker-dealer services in Singapore. Gerald Goh explained that the brokerage will facilitate quote matching for clients by aggregating bid-offer data from market makers through the Swiss bank. While the upcoming license will enable Sygnum customers to trade, send, and receive both crypto and fiat money, it will not encompass fiat-to-crypto and crypto-to-fiat conversion services.
Swiss Bank Rise Amid US Bank Failures:
Amid the banking crisis in the United States, Sygnum’s Swiss bank witnessed a significant increase in interest from potential clients. By the end of May, the bank’s client assets, comprising digital tokens and fiat money deposits, soared to an “all-time high” of over 3 billion Swiss francs ($3.3 billion), as reported by Goh.
The collapse of Silvergate Capital and Signature Bank in the United States in March has substantially reduced banking options for crypto companies. Traditional lenders have become more cautious about onboarding customers associated with the volatile digital asset industry, leading to a narrowing of available banking services.
The short-term impact on crypto liquidity is expected, creating an opportunity for innovative challenger banks to fill the void left by SVB, Silvergate, and Signature. Sygnum’s expanded offerings will enhance its market position as a leading digital asset service provider in Singapore and South-East Asia, further strengthening its presence in the region.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
Follow Cryptos Headlines on Google News
Join Cryptos Headlines Community
Author
