Sygnum, a leading crypto-focused bank, achieved a significant milestone on January 13, securing a valuation of $1 billion after raising $58 million in its latest funding round. The round was led by Fulgur Ventures, a venture capital firm specializing in bitcoin, and saw participation from both new and existing investors. Some of Sygnum’s employees also contributed to the round.
Significance of the Funding
This successful funding round underscores the ongoing recovery of the cryptocurrency industry, which is rebounding as investor sentiment strengthens following a challenging period marked by tighter monetary policies and the collapse of the FTX exchange.
Company Background
Headquartered in Zurich and Singapore, Sygnum caters primarily to institutional clients, enabling them to trade crypto tokens and use their crypto assets as collateral for loans. The firm also offers digital asset custody services and allows clients to earn interest on their crypto holdings. Sygnum does not serve retail customers.
Founded in Liechtenstein in 2018, the company aims to expand its presence across the European Union and the European Economic Area by the end of 2024. The newly raised funds will support Sygnum’s plans to extend its reach in Europe and launch operations in Hong Kong. Additionally, the funds will be used to enhance the company’s infrastructure and diversify its product offerings.
Expansion and Growth
Sygnum reported a notable increase in revenue from its trading products, including crypto spot, derivatives, foreign exchange, and traditional securities, which had already surpassed the previous year’s total by the third quarter of 2024.
Statements from Leadership
Mathias Imbach, co-founder and group CEO of Sygnum, emphasized the company’s focus on its core markets in Europe and Asia, stating, “We have no current plans to enter the U.S. market with our own entities.” However, he highlighted the positive developments in the U.S. crypto market, noting, “The U.S. developments for positive crypto market reform are highly encouraging.” Imbach added that Sygnum is exploring alternative strategies to capitalize on these trends, including potential partnerships and mergers and acquisitions, and will provide updates when these options are further developed.
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