As in previous fundraising rounds, Sygnum employees took part in the round as personal investors.
Swiss crypto bank Sygnum has raised $40 million in a funding round at a $900 million valuation. The round, which exceeded its $35 million target, was led by asset management group Azimut Holding. This latest development brings the fintech firm closer to “unicorn” status, which means a valuation of $1 billion or more.
“Closing a successful funding round in this macro environment with such strong partners is exciting, and we are thankful for our investors’ trust in us,” Mathias Imbach, Sygnum’s co-founder and CEO, said. He emphasized the company’s commitment to building trust through regulation and good governance, a strategy that has guided them through various market cycles.
The fintech plans to use the capital injection to fund expansion plans in Europe and the Asia-Pacific region. No details on which particular markets the company was eyeing were given due to regulatory obligations. The company also intends to further develop its suite of regulated products, including its bank-to-bank platform that services over 15 banks and financial institutions worldwide.
“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,” Gerald Goh, co-founder and CEO of Sygnum’s Singapore arm said. He went on to highlight the significance of the raise:
“For Sygnum, this fundraise will allow us to further build out our suite of fully regulated solutions to support investors as they increase their exposure to the asset class.”
As in previous fundraising rounds, Sygnum employees took part as personal investors. As it stands employees, along with the co-founders, board members, and the management team hold majority ownership of the firm.
The fintech was founded in 2018 and has a team of close to 250 members. Besides its Switzerland-based digital asset bank, it also offers asset management services through its Singapore outfit.
Sygnum raised $90 million in its last funding round in January of 2022, valuing it at $800 million. The round saw participation from a number of Asia-based investors, including Sun Hung Kai & Co., Animoca Brands and SBI Holdings. Since then, the company has witnessed impressive growth. Its assets under management (AUM) have ballooned to $4 billion, with a client base of over 1,700 spanning 60 countries. It also has operating licenses in Abu Dhabi and Luxembourg.
In April 2023, the company participated in the $23 million fundraise for staking provider P2P.org, which is taking advantage of Ethereum’s Shanghai upgrade to build an intermediary-focused infrastructure platform with a focus on improved user experience in staking and fuel expansion initiatives.