Once it fulfils the final criteria to become a Swiss bank, the company will be able to issue, store, trade and manage the digital assets Bitcoin and Ethereum, and convert fiat currencies such as Swiss francs, Singapore and US dollars and euros into the two cryptocurrencies. The company also will offer custody, brokerage and tokenisation services for digital assets to qualified investors and institutions.
While the volume of Bitcoin trading has surged and attention to digital assets has jumped with the likes of Facebook’s proposed Libra coin, regulation of the industry is sporadic and in its infancy. Sygnum has been raising money and getting backing from established players as it works to get Singapore’s approval.
Sygnum has raised about 60 million Swiss francs ($85 million), which will suffice for the next few years, Imbach said. Some 85% of the firm’s employees including all board directors have a stake, and Singapore Telecommunications is among institutional investors. Chua Kim Leng, the MAS’s former special advisor for financial supervision, sits on the board and also heads the anti-money laundering committee at the company.
While waiting for final clearance and procedure to set up a bank in Switzerland, the company is conducting due diligence on potential customers to ensure they comply with anti-money laundering rules, Imbach said.
“We have been approached over the past few months by many parties who hold a lot of cryptocurrencies and look for a fully regulated bank,” said Imbach, who is chief executive officer of Sygnum. “One of their biggest challenges is to find banking specialists to connect them to the real world, to pay their taxes, their employees’ salary.” - Bloomberg LP
