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Sygnum expands its offering into Luxembourg, Europe’s largest fund market



Zurich, 1 December 2022 – Sygnum follows its in-principle approval in Abu Dhabi with expansion of its offering into Luxembourg and the launch of regulated, bank-grade crypto services.

  • First crypto-native bank to access Europe’s largest fund and asset management market with CHF 6tn[i] AuM growing at 18 percent annually

  • Fills market gap for regulated crypto services with digital asset custody and B2B banking platform

  • Client’s crypto assets are fully segregated and held off-balance sheet which eliminates all counterparty risks towards Sygnum

Since the regulatory clarifications enabling Luxembourg-based Alternative Investment Funds (AIFs) to invest in digital assets in 2021, the demand for institutional-grade crypto services has risen significantly. To take advantage of this market opportunity, Sygnum is expanding its Swiss-regulated crypto offering[ii] into Luxembourg market.


Targeted at Alternative Investment Funds (AIFs) and institutional investors, Sygnum’s institutional-grade crypto custody offers convenient and secure access to the expanding universe of crypto assets. As a regulated Swiss bank, Sygnum holds client assets off balance sheet in a fully segregated manner which eliminates all counterparty risks towards Sygnum and provides complete peace of mind to investors.


Sygnum’s B2B banking services enables banks and local depositaries to offer regulated crypto services to their end clients in order to continually expand and future-proof their offering. The solution, that already has 15 banks on the platform, provides fast, modular access to Sygnum’s entire suite of banking services through one entry point, including segregated client wallets, institutional-grade crypto trading, custody, staking and tokenization.


Sygnum selected Luxembourg as part of its international expansion strategy due to its clear regulatory frameworks, growing adoption and strong local demand for trusted, institutional-grade crypto services. Luxembourg is Europe’s largest fund centre with 27%[iii] market share and AuM of CHF 6tn. Alternative Investment Funds (AIFs) have also grown by over 30 percent in the past three years, fuelled by the EU Alternative Investment Fund Managers Directive (AIFMD) which enables Luxembourg asset managers to ”passport” their management services and easily distribute funds throughout the EU.

Sygnum’s international expansion into Luxembourg enables access to digital asset funds in the world’s second biggest fund and asset management investment market. We look forward to providing the regulated crypto solutions and bank-grade custody that Luxembourg investors need to invest in digital assets with complete trust”, says Matthias Friedli, Sygnum Bank’s Head of Funds & Hedge Funds”.


References:

[i] Association Luxembourg Fund Industry https://www.alfi.lu/en-gb/news/record-year-for-luxembourg-investment-funds,-aum-a

[ii] Selected services only on a cross border basis only [iii] Association Luxembourg Fund Industry https://www.alfi.lu/en-gb/annual-report/2021-2022/statistics#:~:text=Net%20assets%20of%20investment%20funds,%25%2C%20respectively%20(2021).


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About Sygnum

Sygnum is the world’s first digital asset bank, and a digital asset specialist with global reach. With Sygnum Bank AG’s Swiss banking licence, as well as Sygnum Pte Ltd’s capital markets services (CMS) licence in Singapore, Sygnum empowers professional and institutional clients or qualified investors (e.g., corporates, banks, and other financial institutions) to invest in the digital asset economy with complete trust. Sygnum operates an independently controlled, scalable, and future-proof regulated banking platform. Our interdisciplinary team of banking, investment, and Distributed Ledger Technology (DLT) experts is shaping the development of a trusted digital asset ecosystem. The company is founded on Swiss and Singapore heritage and operates globally. To learn more about Sygnum, please visit www.sygnum.com.


Media Contact

Dom Castley Tel.: +41 58 508 20 18 E: dominic.castley@sygnum.com


Sygnum Bank AG

Uetlibergstrasse 134a

8045 Zurich

Switzerland




Disclaimer

This document was prepared by Sygnum Bank AG. This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Pte Ltd, its affiliates, and partners at the time of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Pte Ltd to purchase or sell assets or securities. It is not intended to be used as a general guide to investing, and should be used for informational purposes only. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable. However, Sygnum Pte Ltd makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.




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