Crypto-Bank Sygnum Gets Approval for Trading Platform

Sygnum Gets Approval

              Swiss federal banking regulator Finma has announced it has given approval for Swiss crypto-bank Sygnum to launch its fintech platform, offering trading of digital assets. Sygnum plans to launch digital assets platform to allow investors diversification of portfolios by investing in assets in form of tokens, like equity, debt, real estate. This would allow to trade assets even previously inaccessible. Tokenized assets’ market is getting bigger each year, and now is estimated to be worth as much as 24 trillion dollars by 2027. According to many experts, tokenized securities might disrupt the securitization business model in next few years. Until very recently, tokenized assets were not regulated, as were many crypto-banks created by fintech start-ups. Sygnum got approval to operate as crypto-bank, and now it has got the green light from Swiss financial watchdog to start digital trading platform.

Digital Swiss Franc

              Previously, Swiss crypto-bank Sygnum has announced it launched a digital Swiss franc, called DCHF, which is a stable coin with exchange rate connected to the one of real CHF. Such solution means no volatility of prices, typical for digital currencies, takes place. Investors on soon-to-be-launched digital platform will have the opportunity to make instant settlements of trades with digital Swiss franc, and to move whenever they want to real CHF, with exchange rate at 1 to 1, and between digital token positions, all in real time. Every stable coin issued by Sygnum is underpinned by CHF, as agreed by Swiss National Bank in legal tender. DCHF is based on blockchain technology, which offers distributed ledger, and transfer without any intermediary in real time, which also saves time and costs of financial transactions. According to Sygnum, DCHF is aimed mainly at institutional clients. This stable coin could become main component of their digital assets and should also enable incorporating those into traditional banking infrastructure, acting as a bridge between modern, crypto fintech world and well known banking system.

Changes in Group Structure

              Together with the news of getting a green light to launch new digital platform, Sygnum has announced new group structure. The fintech start-up, based in Zurich, is becoming a group composed of two companies, both with headquarters in Switzerland. First entity will be responsible for digital solutions, whereas second one will be dedicated to asset management, and have the role of launching new services and products, expanding Sygnum’s empire, adding to already existing products which were developed mainly by Sygnum’s entity based in Singapore and listed on CMS.