Sygnum Reveals Push Towards Holistic Crypto-TradFi Treasury Management

Sygnum, a global digital asset banking group, reveals an accelerating push towards sophisticated, holistic Crypto-TradFi treasury management by its DLT foundation and corporate clients. The demand for advanced tools to manage multi-asset treasuries – on the same banking platform – has led to a  doubling of clients trading traditional securities since 2023, and 400% average annual growth in trading volumes since 2020. This push towards more sophisticated, holistic Treasury Management has been accelerated by the  uncertain macro-environment, US regulatory and market reforms and the need for more agile risk management. 

In 2020, due to a lack of available options, most DLT foundations limited investments in traditional securities to simple instruments such as short-dated US T-Bills. Today at Sygnum, a much wider range of low-risk, yield generating traditional assets — including equities, global ETFs, fixed income and private market investments – are  being combined with crypto spot, derivatives and yield solutions to exponentially broaden the menu of available  investment strategies. 

Sygnum’s ability to manage sophisticated Crypto-TradFi treasuries “under one roof” creates significant advantages for DLT foundations compared to other solutions. In addition to being crypto-native, Sygnum’s benefits include  experience matching treasury investments to different fund usages and associated time horizons – for example, financing of ongoing operations, research and protocol development funding as well as long-term investments – as well as balancing crypto and traditional yields, and equalising credit and equity risks. 

Sygnum’s DLT foundation, corporate and professional clients can conveniently access a broad selection of  traditional securities via their relationship managers, Sygnum’s trading desk and independently via the bank’s client  portal. They can also access the bank’s crypto-native investment expertise through Sygnum Select, an advanced  managed account service that dynamically manages investment horizons and risk appetite. Service benefits include treasury customisation, ongoing flexibility and diversification into a broad investment universe.

“As crypto foundations and other key players in the digital asset ecosystem continue to develop their finance  functions, treasury management has become a strategic priority,” says Nestor Palao, Sygnum’s Head of DLT and  Corporate Clients. “Our clients are increasingly looking for ways to manage treasury risk holistically, diversify  portfolios, and generate returns on idle capital – all while maintaining the flexibility to quickly rebalance as market  conditions evolve.” 

“Managing treasury assets of crypto companies and foundations effectively requires an integrated approach across both digital and traditional assets,” says Fabian Dori, Sygnum’s Chief Investment Officer. “We believe that every  multi-asset-class investment strategy should be uniquely tailored to select the optimal balance of risk appetite,  return goals, liquidity needs and flexibility. Our Sygnum Select service aims at ensuring that investors can always  retain their competitive edge in dynamic market conditions – like the ones we are experiencing right now.”