Crypto bank Sygnum raises $54 million for expansion plan
Summary
SINGAPORE - Digital asset banking group Sygnum has raised over US$40 million (S$54 million) that will fund its expansion into new markets.The group, which was incorporated in Switzerland and Singapore in 2018, said in a Jan 25 statement that the latest fund-raising round was led by global asset management group Azimut Holding, and surpassed the initial target of US$35 million.It brings the groups post-money valuation to US$900 million.The proceeds raised will be used to expand Sygnums geographic reach into one market in the European Union and another in the Asia-Pacific in 2024.The funds will also be used to accelerate the development of the cryptocurrency banks fully regulated products, such as its bank-to-bank platform that currently powers the crypto offerings of more than 15 banks and financial institutions globally.Mr Gerald Goh, Sygnums co-founder and Singapore chief executive, said: As clients needs and activities with Sygnum continue to grow and become more sophisticated, the fresh funds will help us stay on course to continuously upgrade and enhance our product and service offerings.Similar to previous fund-raising rounds, some Sygnum employees participated as personal investors on the same terms as other investors. These employees, together with the co-founders, board members and the management team, remain the groups majority shareholders.Mr Goh said the fresh funding comes as the broader industry is emerging from a recent crypto winter, referring to a prolonged and pronounced bear market in the cryptocurrency space.He added that investors and market participants are increasingly seeking to partner with trusted and well-managed financial institutions.At the end of 2023, Sygnum said it clocked an annualised revenue run rate (ARRR) of over US$100 million and achieved positive cash flow in the last quarter. The ARRR is a financial metric that projects a companys current revenue over a full year.Currently, the group has more than US$4 billion in assets under management, with over 1,700 clients from more than 60 countries.The group now has close to 250 employees in its four offices in Switzerland, Singapore, Luxembourg and the United Arab Emirates.Mr Giorgio Medda, chief executive of Azimut Holding, said Sygnum has been a key partner since 2021. The two firms developed together the first tokenisation of a private credit portfolio in Europe.