Switzerland-based digital asset bank Sygnum has received approval to operate under the Token and Trusted Technology Service Provider license from Liechtenstein’s financial services regulator, the Financial and Markets Authority (FMA). The license positions the bank to operate under the European Markets in Crypto-Assets (MiCA) regulations.
The Liechtenstein Parliament approved the Token and Trusted Technology Service Provider Act (TVTG) in October 2019. The TVTG made Liechtenstein one of the first jurisdictions to have a comprehensive regulatory framework for digital assets.
The TVTG came into effect in early 2020, and Liechtenstein has sought to become a digital asset and blockchain innovation hub.
The license means Sygnum can offer digital asset services in the EU as outlined in the MiCA rules.
Sygnum holds a banking license in Switzerland and CMS and Major Payment Institution licenses in Singapore. The group is also regulated in Abu Dhabi and Luxembourg.
Martin Burgherr, Sygnum Chief Clients Officer, said the license in Liechtenstein “paves the way for a significant expansion of our regulated footprint into the EU, the world’s largest trading bloc.”
Sygnum reports that it is finalizing preparations for MiCA Regulation, which Liechtenstein will absorb into its regulatory framework in Q1 2025 and provide Sygnum access to all 30 EU and EEA markets.
In Asia, Sygnum states that it plans to expand into Hong Kong as well as pursue more growth with its Singapore Major Payment Institution Licence.
In January 2024, Sygnum raised around $40 million via a funding round with a valuation of USD $900 million.
Sygnum has also announced partnerships with PostFinance to launch a crypto service, collaborated with Hamilton Lane and Fidelity on tokenization projects, and launched Sygnum Connect, a 24/7 multi-asset settlement network with AsiaNext, Hidden Road and B2C2 that can be accessed via Fireblocks.
Sygnum reported H1 2024 profitability and became the first regulated bank to issue a Bitcoin-backed syndicated $50 million loan to a crypto lending platform.
Last month, in an interview with CI, Sygnum explained that its customer base is composed of institutional and professional investors, including (ultra) high-net-worth individuals, family offices, foundations, fund managers, external asset managers, corporate clients, and other banks and financial institutions.
