Sygnum, a prominent crypto banking entity in Switzerland, has announced that it has successfully obtained a crypto license in Liechtenstein through its local branch.
As reported on September 23, Sygnum’s Liechtenstein subsidiary, Sygnum Europe AG, has been officially registered with the Financial Market Authority (FMA) of Liechtenstein as a service provider under the Token and Trusted Technology Service Provider Act (TVTG).
This new licensing allows Sygnum to provide a variety of regulated digital asset services, encompassing brokerage, custody, and B2B banking operations.
Strategic Expansion into the European Union
By establishing its operations in Liechtenstein, Sygnum is poised to leverage the country’s regulatory alignment with the EU. This move is particularly timely given the implementation of the upcoming Markets in Crypto-Assets Regulation (MiCA).
Recently approved by the European Union, MiCA is designed to foster a regulatory framework for digital assets that safeguards crypto users while encouraging innovation. This regulation permits licensed companies to function across all 27 EU member states and the EEA nations, including Liechtenstein.
Thus, Sygnum’s new license opens the door for the company to strategically enter all 30 EU jurisdictions and other EEA markets by the first quarter of 2025. Martin Burgherr, the Chief Clients Officer at Sygnum, commented:
“Being registered as a CASP in Liechtenstein lays the groundwork for a substantial expansion of our regulated footprint within the EU, which is the largest trading bloc globally.”
In addition to its ambitions in the EU, Sygnum is also planning to broaden its reach into Hong Kong through its digital asset financial services platform regulated in Singapore. The bank has made noteworthy progress in markets like Luxembourg and Abu Dhabi recently.
Sygnum’s expansion initiatives coincide with its increasing profitability. In January 2024, the firm successfully raised over $40 million in an oversubscribed funding round, elevating its valuation to $900 million. Presently, Sygnum maintains a robust core equity capital exceeding $125 million.
This year, Sygnum has also established strategic partnerships including a crypto service collaboration with PostFinance and tokenization projects with Hamilton Lane and Fidelity. Furthermore, Sygnum issued a $50 million Bitcoin-backed syndicated loan to Ledn, a platform focusing on crypto lending.