Sygnum, the world’s first digital asset bank, has generated additional CHF multi-billion client demand by complementing its core regulated digital asset offering with traditional securities.
- Market traction due to clients’ ability to combine crypto and traditional assets conveniently, simply and securely within one trusted regulated provider
- Diversification opportunities into 10,000+ traditional securities including fixed income products, global equities, and ETFs and ETPs from Tier 1 global asset managers
- Strong growth trajectory continues with total 2022 trading volumes being surpassed in early September 2023, a tripling of Net New Money* and continued strong market traction in B2B banking services
New complementary offering
Sygnum today announces significant growth in its traditional securities offering that complements its core regulated digital asset offering. Traditional securities, first made available to selected clients in March 2023, has already generated CHF multi-billion client demand and a strong future growth pipeline.
Sygnum clients can now diversify into 10,000+ traditional securities including fixed income products like bonds and money market instruments, global equities from as well as ETFs and ETPs from Tier 1 asset managers like Blackrock and Vanguard.
Enabled by Sygnum’s Crypto-TradFi bridge
Client demand to complement their core cryptocurrency investments with traditional securities is primarily from crypto foundations and other large holders. Sygnum’s offering is empowering them to manage their treasury risk more holistically, diversify their portfolios and generate attractive returns on idle capital. Using Sygnum’s regulated Crypto-TradFi bridge, clients can transition between fully-liquid positions conveniently and seamlessly within one trusted regulated provider – significantly reducing transfer costs, times and complexity.
Demand is also coming from the growing number of newly-crypto activated traditional clients who are diversifying into the asset class at an attractive entry point, and leveraging Sygnum’s ability to shift allocations between crypto and traditional assets easily, and on demand.
This growing demand is driven by the challenging global macro environment which continues to be impacted by COVID-19 after-effects, stubbornly high inflation, and geopolitical uncertainty. The subsequent rate hikes, which have pushed US short-term treasury yields past five percent**, has provided new opportunities for crypto investors to diversify their portfolios and earn yield while the industry consolidates, anticipating the next crypto market bull-cycle.
Bringing traditional securities “on-chain”
In parallel, Sygnum is building new “high-speed lanes” on its Crypto-TradFi bridge via the tokenising of traditional securities. By creating an on-chain version of these assets, the foundations of a new, fully tokenised financial ecosystem are being laid that is both highly transparent and scalable. Investors benefit from a range of advantages including higher speed transactions with lower costs, as well as reduced counterparty risks.
Martin Burgherr, Sygnum Chief Clients Officer says that “Continually expanding choice is key to our client-centric service approach. Complementing our core crypto offering with traditional securities is another example of how the future has – and needs – heritage to keep pace with the evolving needs of institutional investors.”
Sygnum’s strong growth trajectory continues
Two pillars of Sygnum’s founding strategy are the importance of working within regulated frameworks and leveraging the twin quality financial hubs of Switzerland and Singapore as launchpads for international expansion. This thesis continues to play out, even in the current neutral market environment. Three proof-points of Sygnum’s continued strong growth trajectory are its surpassing of total 2022 trading volumes in early September 2023, and its tripling of Net New Money (NNM) compared to the same period last year. Additionally, the millions of customers from the 15+ banks on Sygnum’s B2B platform, including PostFinance and the recently-live Zuger Kantonalbank, represent significant market multipliers for future growth.
