PRESS RELEASE

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, already live with 15 banks, 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”.

END

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

Disclaimer: This document was prepared by Sygnum Bank AG (Sygnum Bank). Sygnum Bank is licensed as bank and securities firm and subject to prudential supervision by Swiss Financial Market Supervisory Authority FINMA (Laupenstrasse 27, CH-3003 Berne) in accordance with Swiss law.

Without prejudice to the below, Sygnum Bank is not regulated nor subject to prudential supervision in the EU/EEA, nor authorized to take deposit and/or providing other banking services in Luxembourg on the basis of a local/EEA license. However, Sygnum Bank is/may be subject to mandatory registration requirements for AML-CFT purposes in certain EU/EEA countries and/or operate according to one or more local third-country frameworks for third-country investment firms and/or credit institutions. Such registration/s shall not, under any circumstance, be construed or be deemed as a positive assessment by the competent authorities of the quality of the services provided by Sygnum Bank and does not amount to a full scope license issued under EU/EEA law. In respect of the provision of certain services/activities in accordance with the aforementioned third-country regime/s, Sygnum Bank is allowed to provide its services only to per se professional clients and eligible counterparties as these terms are defined under MiFID.

This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Bank, 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 and is not intended for distribution in the US and/ or to US Persons or in jurisdictions where its distribution by Sygnum Bank would be restricted. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Bank to purchase or sell assets or securities nor avail of any of the services referred to herein, which may be available only to limited categories of investors and/or restricted in certain jurisdictions. 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 Bank makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information. The information contained herein is not intended to provide, and should not be relied upon for accounting, legal or tax advice or investment recommendations. You should consult your tax, legal, accounting or other advisors about the issues discussed herein.

Further information on Sygnum Bank AG, and the applicable regulatory disclaimers can be found here.
 

^[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).