Sygnum, a Swiss/Singaporean crypto-currency bank, will offer regulated crypto services to European banks, funds and hedge funds through Luxembourg.
According to its press release, the bank chose Luxembourg “due to its clear regulatory frameworks, growing adoption and strong local demand for trusted, institutional-grade crypto services.”
In terms of regulation, under the AIFMD, Luxembourg asset managers are able to distribute “passport” their management services and easily distribute funds throughout the EU.
Meanwhile, 2021 regulatory clarification from Luxembourg financial watchdog the CSSF enabled Luxembourg-based AIFs to invest in digital assets. According to Sygnum, since this clarification, “demand for institutional-grade crypto services has risen significantly.”
Luxembourg holds 27% of the European fund market share. Meanwhile, in a 2022 survey by Luxembourg’s House of Fintech, ALFI and PWC a fifth of respondents said they considered crypto-assets as a strategic priority now, and a further 43% expected it to become a priority in the next two years.
“We look forward to providing the regulated crypto solutions and bank-grade custody that Luxembourg investors need to invest in digital assets with complete trust”, says Matthias Friedli, Sygnum Bank’s Head of Funds & Hedge Funds.
Sygnum bank was granted a banking licence by the Swiss financial regulator Finma in 2020.
Its B2B banking services enable banks and local depositaries to offer regulated crypto services to their end clients in order to continually expand and future-proof their offerings. According to Sygnum, some 15 banks are already on the platform.
