Crypto bank Sygnum’s market valuation has surpassed $1 billion

What’s new? Crypto bank Sygnum has raised $58 million in a new funding round led by bitcoin venture capital firm Fulgur Ventures, reaching unicorn status with a valuation above $1 billion. In addition to new and strategic investors, Sygnum team members participated in the round on equal terms, retaining a controlling stake alongside the co-founders and board of directors.

Material by The Block

What else is known? Oleg Mikhalsky, a partner at Fulgur Ventures, said Sygnum was chosen to co-develop innovative bitcoin-related financial products and technologies because it offers market-proven infrastructure, an experienced cohort of digital asset specialists, and a global ecosystem.

He said the initiative “coincides with a potential inflection point,” after which we should expect to see broader institutional adoption of the first cryptocurrency and clarity on industry regulation.

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The bank’s previous funding round was in January 2024, when it raised over $40 million at a $900 million valuation led by Milan-based asset manager Azimut Holding.

And even earlier, in January 2022, Sygnum raised $90 million with participation from several Asian investors, including Sun Hung Kai & Co., Animoca Brands, and SBI Holdings.

The new funds will be used to expand the company’s product portfolio with a focus on bitcoin technology, as well as expand its institutional infrastructure, strengthen its compliance units, and make strategic acquisitions.

In addition, the funding will help Sygnum implement its plans to expand into the EU and enter the Hong Kong market as a regulated institution.

In addition to licenses in Switzerland and Singapore, where Sygnum is headquartered, the bank is also regulated in Abu Dhabi, Luxembourg, and Liechtenstein. This quarter, it plans to be licensed under the EU-wide Markets in Crypto-Assets (MiCA) regulation.

Sygnum co-founder and CEO Mathias Imbach said Switzerland needs to innovate more in the financial sector and attract talent and capital, as the country is now losing ground to other jurisdictions as a crypto hub.

Sygnum recorded an increase in trading volume of more than 1000% year-over-year. The team claims that the positive annual financial result was driven by growth in trading products including cryptocurrencies, derivatives, forex, and traditional securities.

The banking group currently manages more than $5 billion in assets for more than 2000 clients in 70 countries.

Last year, Sygnum launched Sygnum Connect, a multi-asset, 24/7 settlement network with AsiaNext and Hidden Road as the first members.

The bank also introduced the Sygnum Protect platform, through which institutional clients can trade on major crypto exchanges but store collateral with Sygnum.

Sygnum also works with Fidelity International, Matter Labs, and Hamilton Lane on the tokenization of real-world asset (RWA) projects and collaborates with Chainlink (LINK) decentralized oracle network team for on-chain data.