subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now
Bitcoin has name recognition, but doge is cuter. Picture: 123RF/volody10
Bitcoin has name recognition, but doge is cuter. Picture: 123RF/volody10

Crypto-focused bank Sygnum secured a valuation of $1bn after raising $58m 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.

The deal emphasises the recovery of the crypto industry, which is regaining its footing as investor sentiment improves after a downturn sparked by tighter monetary policy and the collapse of FTX.

The company, headquartered in Zurich and Singapore, lets its institutional users trade crypto tokens and borrow against their crypto assets.

It also provides digital asset custody and enables customers to earn interest on their crypto holdings. It doesn’t cater to retail users.

Sygnum was registered in Liechtenstein in September and is aiming to get access to all markets in the EU 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 it will also invest in its infrastructure and product line-up.

Sygnum said revenue 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.

“Sygnum has focused on its home markets in Europe and Asia and has no current plans to enter the US market with our own entities,” said co-founder and CEO Mathias Imbach.

“The US 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.”

Reuters

subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.