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Sygnum (Courtesy: Twitter)
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SYGNUM To Become First Digital Asset Bank After Receiving FINMA Approval

Sygnum (Courtesy: Twitter)
Sygnum (Courtesy: Twitter)

Sygnum, the world’s first digital asset bank, has received FINMA regulatory approval for its digital asset trading facility (OTF[i]), a press release announced. This is a central element of Sygnum’s end-to-end tokenization offering, a regulated solution which covers the complete life-cycle of a security – from primary issuance, settlement, custody and now, secondary trading.

Sygnum’s digital asset trading facility offers investors’ access to new, untapped investment opportunities. They benefit from instant settlement, the ability to move between fiat, digital CHF (DCHF) and asset token positions in real-time, and the security of bank-grade custody – all in one regulated platform.

In addition, following one year of successful bank operations, Sygnum is announcing the creation of a Group structure and plans to establish two new entities to enable the next phase of growth.

Using Sygnum’s digital asset trading facility, investors can broaden their investment opportunities and add diversification by trading previously non-accessible securities in a tokenized form, including equity, debt, and real estate. They also benefit from instant settlement via the Sygnum-issued digital CHF (DCHF), the flexibility of moving between fiat, DCHF and asset token positions in real-time, and bank-grade custody of their digital assets – all within one integrated platform.

Sygnum is already working with issuers to tokenize their shares, raise capital in a fully digital manner as well as listing their securities on the digital asset trading facility to enable liquidity.

Asset tokenization, a market forecast to be worth USD 24 trillion by 2027[ii], has the disruptive potential to reshape the securitisation business model in the coming years. To date, however, tokenization solutions have predominantly been unregulated and often only provide partial solutions within the securitisation life-cycle. Sygnum’s regulated, end-to-end offering enables the significant benefits of asset tokenization to be realised by issuers, investors, and institutional partners.

“Our DLT-based tokenization solution streamlines the securitisation process end-to-end, delivering greater transparency and efficiency as well as reducing transaction times and costs,” says Mathias Imbach, Sygnum Co-Founder.

“Without regulated secondary trading venues with relevant liquidity, tokenization will not take off. Much more collaboration between digital asset specialists such as Sygnum and established exchanges and banks, as well as M&A related service providers along the value chain, is needed. We are open to these partnerships to make Future Finance a reality,” he adds.

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