Swiss crypto banking group Sygnum has recently announced that its Liechtenstein subsidiary, Sygnum Europe AG, has obtained a crypto license from the country’s Financial Market Authority (FMA) under the Token and Trusted Technology Service Provider Act (TVTG). This license allows the firm to offer regulated digital asset services such as brokerage, custody, and B2B banking.
By establishing a presence in Liechtenstein, Sygnum strategically positions itself to take advantage of the country’s regulations aligned with the European Union (EU), particularly the Markets in Crypto-Assets Regulation (MiCA). The MiCA regulation, recently approved by the EU, aims to create a regulated digital asset environment that safeguards crypto users while fostering innovation. With this framework, licensed companies can operate across all 27 EU member states and EEA countries like Liechtenstein.
Sygnum’s Liechtenstein license sets the stage for its planned expansion into all 30 EU states and other EEA markets by the first quarter of 2025. Martin Burgherr, the bank’s Chief Clients Officer, highlighted the significance of this move by stating, “The registration as CASP in Liechtenstein paves the way for a significant expansion of our regulated footprint into the EU, the world’s largest trading bloc.”
In addition to its EU ambitions, Sygnum also has plans to enter the Hong Kong market through its Singapore-regulated digital asset financial services platform. The bank has been making notable progress in markets like Luxembourg and Abu Dhabi.
Sygnum’s expansion efforts coincide with its increasing profitability. In January 2024, the firm successfully raised over $40 million in a funding round, surpassing its valuation to $900 million. Currently, Sygnum boasts more than $125 million in core equity capital.
Throughout the year, the bank has secured strategic partnerships with PostFinance for a crypto service, as well as collaborations with Hamilton Lane and Fidelity for tokenization projects. Additionally, Sygnum recently provided a $50 million Bitcoin-backed syndicated loan to Ledn, a crypto lending platform.
Overall, Sygnum’s growth trajectory and strategic moves demonstrate its commitment to establishing a strong presence in key global markets while maintaining a focus on innovation and regulatory compliance.