Digital asset bank startup Sygnum secures $58M to join the unicorn club with $1 billion valuation

Swiss-Singapore digital asset bank startup Sygnum has raised $58 million in its latest funding round, achieving a $1 billion valuation and earning its place in the highly coveted unicorn club. This milestone reflects a brighter outlook for the crypto industry, which is bouncing back after challenges tied to monetary policy shifts and the collapse of FTX.

The funding round saw participation from Fulgur Ventures, a bitcoin-focused venture capital firm, alongside new and existing investors. Some Sygnum employees also took part, while the company’s co-founders, board members, and the team maintained majority ownership.

The new capital will fuel Sygnum’s European expansion and its entry into Hong Kong. The company also plans to enhance its infrastructure and expand its suite of products.

With headquarters in Zurich and Singapore, Sygnum offers institutional clients the ability to trade crypto tokens, secure loans against crypto assets, and benefit from digital asset custody services. It also enables customers to earn interest on their crypto holdings. The platform exclusively serves institutional users, steering clear of retail customers. Commenting on the funding, Mathias Imbach, Sygnum’s Co-Founder and Group CEO, said:

“Sygnum reaching Unicorn status is a strong validation by the market of our business model, strategy, and team. While it is an achievement we are very proud of, it won’t alter the values of integrity and humility, and the importance of displaying confidence without attitude at all times, which have acted as our true-north since day one.”

Imbach also stressed the need for Switzerland to stay competitive as a hub for digital assets by fostering innovation and attracting talent and capital.

The company currently manages over $5 billion in client assets. Its Strategic Growth Round has strengthened its financial position, including its balance sheet and capital base, to support future expansion.

In September, Sygnum registered in Liechtenstein, aiming to broaden its reach across European Union and European Economic Area markets within the year. By the third quarter of 2024, the company had already surpassed the previous year’s revenue from its trading offerings, which include crypto spot trading, derivatives, foreign exchange, and traditional securities.

Despite its focus on Europe and Asia, Sygnum is keeping an eye on the U.S. market, though it has no immediate plans to establish its own operations there.

“The U.S. developments for positive crypto market reform are highly encouraging,” Imbach said. He noted that the company is exploring opportunities such as partnerships and acquisitions to align with this trend, with updates to follow as plans mature.