Sygnum Sees Strong Crypto Demand After Securing MPIL License
Sygnum AG, a digital-asset bank in Switzerland, is experiencing strong demand for crypto transactions from fund houses, family offices, and institutions. This surge in demand is expected to drive revenues for their new brokerage business in Singapore. On June 13, Sygnum obtained in-principle approval from the Monetary Authority of Singapore for a license that enables them to provide digital token brokerage services.
Sygnum AG Recieves MPIL Approval
In a press release, it was announced that the Major Payment Institution Licence (MPIL) will activate the launch of Sygnum Singapore’s regulated crypto brokerage service.
A lot of our demand right now is coming from web3 or crypto fund managers who as part of their regulated fund management activities, have a business reason to be buying or selling digital assets, including cryptocurrencies.
Also Read: Ripple Gets Major Payments Institution License in Singapore
Sygnum’s plans in Singapore include offering crypto custody and broker-dealer services. Goh explained that the brokerage will matchmake quotes from clients by aggregating bid-offer data from market makers through the bank in Switzerland. While the final license in Singapore will allow Sygnum customers to trade, send, and receive crypto and fiat money, it will not cover fiat-to-crypto and crypto-to-fiat conversion services.
Swiss Bank Rise After US Bank Failures
Following the US banking crisis, Sygnum’s Swiss bank experienced a surge in interest from prospective clients. As of the end of May, client assets, which include deposits of digital tokens and fiat money, reached an “all-time high” of over 3 billion Swiss francs ($3.3 billion), according to Goh.
Read More About US Banking Crisis…
Banking options for crypto firms have narrowed significantly after the collapse of Silvergate Capital and Signature Bank in the US in March as traditional lenders turned more cautious on onboarding customers linked to the volatile digital asset industry.
It was predicted that Crypto liquidity is likely to take a hit in the short term but will be an opportunity for new innovation challenger banks to step up and take the place of SVB, Silvergate and Signature. CoinGape also reported that Silvergate will begin Self-liquidation. Syngum’s offerings will strengthen its market position as a digital asset service provider in Singapore and South-East Asia.
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