Banking Investment News

Singapore licenses digital asset bank Sygnum for capital markets

digital asset exchange

Yesterday, digital asset bank Sygnum announced it had received a capital markets services (CMS) license from the Monetary Authority of Singapore (MAS). The firm can now provide asset management services in the country.

Sygnum, originally an IT provider, began its move towards being a digital asset custodian and bank earlier this year. With Swisscom, Switzerland’s largest telecoms firm, and Deutsche Börse the securities giant as partners it has since been licensed by Switzerland’s FINMA for banking and securities dealing. Sygnum onboarded its first customers just last month.

According to the firm, yesterday’s CMS license allows it to offer digital asset investment consultancy in Singapore. This will first take shape as a multi-manager fund for global investment. Indeed, Sygnum already had a fund management services license from the MAS, but can now work on investment strategies in capital markets.

“The CMS licence is an important milestone to establishing our asset management arm, leveraging the vibrant financial environment in Singapore. This is complementary to our banking services in Switzerland and will also benefit our Swiss institutional and private qualified investor clients,” said Sygnum’s Head of Asset Management, Stefan Mueller.

The firm’s co-founder and CEO of the Singapore branch, Mathias Imbach, added: “Our dual location – in Singapore and Switzerland – is one of the cornerstones of our strategy. This is reflected across team, advisory council, board of directors as well as investor base. All have been instrumental in our achievements so far across both countries.”

The bank has already overseen transactions in Bitcoin and Ethereum, with the assets held in secure wallets. Like a conventional bank, Sygnum manages the private keys. It further uses blockchain in an anti-money laundering (AML) solution which combines the wallets, a review process, and market forecasts.

In the same week of Sygnum’s official launch, Boerse Stuttgart launched its regulated digital asset exchange and SIX released a prototype of its own platform. According to Swiss Info, competitor SEBA is also in talks with the MAS. The central bank has been at the forefront of crypto activities, with a regulatory sandbox and blockchain payment initiatives.