Sygnum Bank Hits $900 Million Valuation, Signaling Confidence in Crypto Banking
Switzerland-based crypto banking group Sygnum has successfully closed a $40 million funding round, elevating the firm’s valuation to an impressive $900 million. The investment was led by Azimut Holdings, a prominent investment manager.
The newly acquired funds are earmarked for the expansion of Sygnum’s offerings into untapped markets in Europe and Asia. This move aligns with the company’s commitment to becoming a global player in the crypto banking space.
Sygnum had previously closed a $90 million funding round in January 2022, valuing the firm at $800 million. Since then, the bank has experienced significant growth, with its assets under management reaching $4 billion and a client base exceeding 1,700 from more than 60 countries.
Gerald Goh, the co-founder and CEO of Sygnum‘s Singapore operations, highlighted the industry’s positive shift, stating, “The broader industry is emerging from the ‘crypto winter,’ and investors and market participants are increasingly seeking to partner with trusted and well-managed financial institutions.” He emphasized that the latest funding would enable Sygnum to enhance its suite of fully regulated solutions to support investors as they expand their exposure to the crypto asset class.
In a major move last year, Sygnum participated in a $23 million fundraise for P2P.org, a staking provider. P2P.org is focused on developing an intermediary-focused infrastructure platform, leveraging the recent Shanghai upgrade of Ethereum to enhance user experience in staking and fuel expansion initiatives, according to CoinDesk.
The recent surge in valuations for crypto banks, exemplified by Sygnum’s remarkable $900 million valuation, reflects a growing level of trust and legitimacy within the cryptocurrency investment landscape. The willingness of investors to contribute significant funds underscores the industry’s departure from the challenges of the ‘crypto winter.’
As the broader crypto sector matures, the increasing valuation of crypto banks signals a paradigm shift, with these institutions now being viewed as credible and secure avenues for investment.
Despite the inherent volatility and relative newness of the industry, the elevated valuations suggest a growing confidence in the long-term viability of crypto banking, paving the way for continued innovation and expansion in the world of digital finance.
