By Niket Nishant (Reuters) - Crypto-focused bank Sygnum secured a valuation of $1 billion after raising $58 million in its latest funding round, it said on Tuesday. The round was backed by bitcoin-
Sygnum Bank Achieves $1 Billion Valuation Post-Funding
By Niket Nishant
(Reuters) - Crypto-focused bank Sygnum secured a valuation of $1 billion after raising $58 million in its latest funding round, it said on Tuesday.
The round was backed by bitcoin-focused venture capital firm Fulgur Ventures, with participation from current and new investors. Some of the company's employees also participated in the round.
WHY IT'S IMPORTANT
The deal emphasizes the recovery of the crypto industry, which is regaining its footing as investor sentiment improves following a downturn sparked by tighter monetary policy and the collapse of FTX.
CONTEXT
The company, which has headquarters in both Zurich and Singapore, lets its institutional users trade crypto tokens and borrow against their crypto assets.
It also provides digital asset custody and allows customers to earn interest on their crypto holdings. It does not cater to retail users.
Sygnum was registered in Liechtenstein in September and is aiming to get access to all markets in the European Union and the European Economic Area this year.
The latest funds will be used to expand its footprint in Europe and launch in Hong Kong, the company said, adding that it will also invest in its infrastructure and product lineup.
Sygnum said revenues across its trading products — such as crypto spot, derivatives, foreign exchange and traditional securities — had surpassed the previous year's total by the third quarter of 2024.
KEY QUOTES
"Sygnum has focused on its home markets in Europe and Asia and has no current plans to enter the U.S. market with our own entities," said Mathias Imbach, co-founder and group CEO of the company.
"The U.S. developments for positive crypto market reform are, however, highly encouraging ... Sygnum is exploring other options to benefit from this trend and will update the market once these are sufficiently developed, for example, partnerships and M&A."
(Reporting by Niket Nishant in Bengaluru; Editing by Alan Barona)
