Sygnum, a global digital asset banking group, reveals an accelerating push towards Crypto-TradFi treasury management by its DLT foundation and corporate clients.
The demand for advanced tools to manage multi-asset treasuries – on the same banking platform – has led “to a doubling of clients trading traditional securities since 2023, and 400% average annual growth in trading volumes since 2020.”
This push towards more sophisticated, holistic Treasury Management has been accelerated by the “uncertain macro-environment, US regulatory and market reforms and the need for more agile risk management.”
In 2020, due to a lack of available options, most DLT foundations limited investments in traditional securities “to simple instruments such as short-dated US T-Bills.”
Today at Sygnum, a wider range of low-risk, yield-generating traditional assets — including equities, global ETFs, fixed income and private market investments – are being “combined with crypto spot, derivatives and yield solutions to broaden the menu of available investment strategies.”
Sygnum’s ability to manage Crypto-TradFi treasuries “under one roof” creates significant advantages for DLT foundations compared to other solutions.
In addition to being crypto-native, Sygnum’s benefits include “experience matching treasury investments to different fund usages and associated time horizons – for example, financing of ongoing operations, research and protocol development funding as well as long-term investments – as well as balancing crypto and traditional yields, and equalising credit and equity risks.”
Sygnum’s DLT foundation, corporate and professional clients can conveniently access a broad “selection of traditional securities via their relationship managers, Sygnum’s trading desk and independently via the bank’s client portal.”
They can also access the bank’s crypto-native investment expertise through Sygnum Select, “an advanced managed account service that dynamically manages investment horizons and risk appetite.”
Service benefits reportedly include “treasury customization, ongoing flexibility and diversification into a broad investment universe.”
Nestor Palao, Sygnum’s Head of DLT and Corporate Clients said:
“As crypto foundations and other key players in the digital asset ecosystem continue to develop their finance functions, treasury management has become a strategic priority. Our clients are increasingly looking for ways to manage treasury risk holistically, diversify portfolios, and generate returns on idle capital – all while maintaining the flexibility to quickly rebalance as market conditions evolve.”
Fabian Dori, Sygnum’s Chief Investment Officer said:
“Managing treasury assets of crypto companies and foundations effectively requires an integrated approach across both digital and traditional assets. We believe that every multi-asset-class investment strategy should be uniquely tailored to select the optimal balance of risk appetite, return goals, liquidity needs and flexibility. Our Sygnum Select service aims at ensuring that investors can always retain their competitive edge in dynamic market conditions – like the ones we are experiencing right now.”
As covered, Sygnum is a global digital asset banking group, “founded on Swiss and Singapore heritage.”
They aim to empower professional and institutional investors, banks, corporates and DLT foundations to “invest in digital assets with complete trust.”
Their team enables this through their “institutional-grade security, personal service and portfolio of regulated digital asset banking, asset management, tokenization and B2B services.”
In Switzerland, Sygnum holds a banking license and “has CMS and Major Payment Institution licences in Singapore.”
The group is also regulated in the established global financial hubs of Abu Dhabi and Luxembourg and is registered in Liechtenstein.”
They believe that the future has heritage.
Their crypto-native team of banking, investment and digital asset technology professionals are reportedly building a “gateway between the traditional and digital asset economies that we call Future Finance.”