Regulatory Certainty Fuels Sygnum’s Growth in Asia’s Digital Asset Market

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Digital asset specialist Sygnum is benefiting from regulatory certainty in Asia, according to co-founders Mathias Imbach and Gerald Goh. They highlight the dangers of operating without regulatory clarity in the crypto industry and emphasize the importance of legal and compliance practices. Sygnum has always prioritized licensing and compliance, which has fueled new business for the company.

Imbach notes that one major growth driver for Sygnum has been the movement of assets from unregulated entities to regulated ones. This shift is driven by the desire for a secure and off-balance sheet arrangement, especially in light of recent collapses in the industry. While Sygnum’s business in Switzerland is more mature, Asia is catching up as regulatory clarity increases in the region.

Sygnum primarily targets the non-retail market in Asia, including crypto foundations, crypto companies, traditional family offices, asset managers, and hedge funds. The company also has a B2B focus in Switzerland, with several banks leveraging its technology. Sygnum recently obtained a major payment institution license from the Monetary Authority of Singapore and entered a partnership with Bordier & Cie to provide digital asset services.

Despite competition from traditional financial institutions, Sygnum sees their entry into the market as a positive development that will drive mainstream acceptance. The issuance of crypto-based exchange-traded funds is another major development to watch, as it could further accelerate mass acceptance of cryptocurrencies.

Sygnum, with its offerings in custody, trading, asset management, and tokenization, has around $4 billion in assets under administration and operates globally with offices in Switzerland, Singapore, Abu Dhabi, and Luxembourg.

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