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Sygnum, the world’s first digital asset bank, has experienced significant growth in its traditional securities offering, which complements its core regulated digital asset offering. This new offering allows clients to diversify their portfolios by investing in over 10,000 traditional securities, including fixed income products, global equities, and ETFs and ETPs from top asset managers like Blackrock and Vanguard.
The demand for this complementary offering comes from crypto foundations and other large holders who want to combine their cryptocurrency investments with traditional securities. Sygnum’s regulated Crypto-TradFi bridge enables clients to transition between fully-liquid positions conveniently and seamlessly within one trusted regulated provider, reducing transfer costs and complexity.
In addition to existing crypto investors, there is also growing demand from traditional clients who are entering the crypto market at an attractive entry point. These clients are leveraging Sygnum’s ability to shift allocations between crypto and traditional assets easily and on demand.
This increased demand is driven by the challenging global macro environment, which is still affected by the after-effects of COVID-19, high inflation, and geopolitical uncertainty. The recent rate hikes have provided new opportunities for crypto investors to diversify their portfolios and earn yield.
Furthermore, Sygnum is building new “high-speed lanes” on its Crypto-TradFi bridge by tokenizing traditional securities. This move towards tokenization aims to create a transparent and scalable financial ecosystem with advantages such as faster transactions, lower costs, and reduced counterparty risks.
Sygnum’s strong growth trajectory is evident in its surpassing of total 2022 trading volumes in early September 2023 and its tripling of Net New Money compared to the same period last year. The company’s strategy of operating within regulated frameworks and leveraging Switzerland and Singapore as launchpads for international expansion has proven successful.
With millions of customers from various banks on Sygnum’s B2B platform, including PostFinance and Zuger Kantonalbank, the company is well-positioned for future growth.