Sygnum, the world’s pioneer digital asset bank, has witnessed a surge in client demand, reaching multi-billion CHF figures, after integrating traditional securities into its offerings. This strategic move allows Sygnum’s clients to diversify their portfolios into a selection of over 10,000 traditional securities, including fixed income products, global equities, ETFs, and ETPs from leading asset managers like Blackrock and Vanguard.
Empowering Holistic Investment Strategies
The demand for this integration primarily stems from crypto foundations and large holders who are seeking to manage their treasury risk comprehensively. Sygnum’s regulated Crypto-TradFi bridge facilitates a seamless transition between cryptocurrencies and traditional securities, providing clients with the ability to optimize their portfolios, generate attractive returns on idle capital, and reduce transfer costs and complexities.
The growing interest in this diversified approach to investments is notably driven by the challenging global macro environment marked by lingering COVID-19 after-effects, persistent inflation rates, and geopolitical uncertainties. As US short-term treasury yields breach five percent, crypto investors are finding new opportunities to diversify their portfolios and earn yields while anticipating the next crypto market bull-cycle.
Tokenizing Traditional Securities for Transparency and Scalability
Sygnum is not just stopping at integrating traditional securities; it is also paving the way for a new financial ecosystem. By tokenizing traditional securities and bringing them “on-chain,” Sygnum is establishing a transparent and scalable financial landscape. This approach allows investors to benefit from faster transactions at lower costs while mitigating counterparty risks, ushering in a new era of finance that merges the traditional and digital realms seamlessly.
Sygnum’s Growth Trajectory
Sygnum’s growth story remains robust, showcasing its ability to navigate regulated frameworks successfully. The bank has already surpassed its total 2022 trading volumes in early September 2023, demonstrating its rapid market traction. Additionally, Net New Money (NNM) has tripled compared to the same period last year, indicating a significant influx of new clients and investments.
The presence of over 15 banks on Sygnum’s B2B platform, including PostFinance and recently integrated Zuger Kantonalbank, highlights its market influence, providing a strong foundation for future growth and expansion.
Martin Burgherr, Sygnum Chief Clients Officer, emphasized, “Continually expanding choice is key to our client-centric service approach. Complementing our core crypto offering with traditional securities is another example of how the future has – and needs – heritage to keep pace with the evolving needs of institutional investors.”
Sygnum’s strategic integration of traditional securities is reshaping the investment landscape, offering clients a holistic approach to managing their assets while propelling the bank into new realms of innovation and growth.