Sygnum Raises $41 Million for Expansion
Swiss crypto bank Sygnum AG has raised 35 million Swiss francs ($41 million) in a funding round led by asset manager Azimut Holding. The funding will support Sygnum’s expansion and acquisition initiatives as it aims to strengthen its presence in new geographical areas. The valuation of Sygnum remains consistent with a previous round in January 2022, at around 725 million Swiss francs ($838 million). Sygnum plans to enter one additional European jurisdiction and one more Asian jurisdiction in the coming year, pending necessary approvals.
Opportunities in the European Market
Sygnum, which operates a digital-asset bank in Switzerland and provides asset management and crypto brokerage services in Singapore, is exploring opportunities in the European market for acquisitions aligned with its current business activities. CEO Gerald Goh stated that all considered opportunities are within the scope of Sygnum’s existing operations. Over the past two years, Sygnum has experienced significant growth, doubling its client base to over 1,700 and increasing assets under management to 3.7 billion Swiss francs by the end of 2023.
Challenges in Crypto Venture Funding
The crypto venture funding landscape has faced challenges following the 2022 digital-asset market rout and high-profile bankruptcies, such as the collapse of the FTX exchange. This has created a difficult environment for businesses built around blockchain technology. Despite the gradual recovery of the crypto industry, investment commitments remain subdued due to caution among investors. However, there are still strong players like HashKey, which recently raised $100 million at a $1 billion valuation.
Hot Take: Sygnum’s Funding Boosts Expansion Efforts
Sygnum’s successful funding round of $41 million will support its expansion plans and strengthen its presence in new geographical areas. The Swiss crypto bank aims to enter additional European and Asian jurisdictions in the coming year. This funding round, led by Azimut Holding, values Sygnum at around $838 million. Sygnum has experienced significant growth over the past two years, doubling its client base and increasing assets under management. Despite challenges in the crypto venture funding landscape, Sygnum’s success highlights the resilience of certain players in the industry.
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