Sygnum secures in-principle approval from the UAE government.
Sygnum, Switzerland’s digital asset bank, has been granted regulatory approval to expand its operations into the United Arab Emirates (UAE). Local news outlet The National Business noted in a report today that Sygnum has obtained in-principle approval from the Abu Dhabi Global Markets’ Financial Services Regulatory Authority (FSRA). The approval will allow Sygnum to cater to the growing demand for cryptocurrencies in the region.
According to the report, Sygnum will serve the local market with its cryptocurrency-native suite of digital asset banking, tokenization, and asset management, as well as B2B banking services licensed by the Swiss Financial Market Supervisory Authority (FINMA).
Following Sygnum’s in-principle approval in the UAE, the company will seek new and existing crypto-related clients in the region. Furthermore, Sygnum is also looking forward to onboarding high-net-worth investors who are seeking trusted crypto exposure through a regulated company.
“Sygnum’s international expansion into the Abu Dhabi crypto hub gives us access to one of the biggest global wealth and asset management pools,” Mathias Imbach, Sygnum’s Co-founder and Group Chief Executive said. “It also gives us new opportunities to show the value of investing in crypto with complete trust to the local community, clients, and partners.”
The announcement comes months after Sygnum raised $90 million from notable investors such as Animoca Brands, and Hong Kong firm Sun Hung Kai, among others. The funding round pushed Sygnum’s valuation to $800 million, Finextra reported earlier this year.
Recall that Sygnum received in-principle approval in March from the Monetary Authority of Singapore (MAS), allowing the digital asset bank to conduct three additional under its previous Capital Markets Services (CMS) license.
About Sygnum
Sygnum is the world’s first regulated digital asset bank that empowers institutions and privately qualified investors, among others, to gain exposure to the crypto economy. National Business stated that Sygnum currently serves about 1,500 clients globally. Sygnum’s clients can use their deposited fiat (USD, EUR, CHZ, and SGD) to invest in popular cryptocurrencies, including XRP, BTC, ETH, and ADA.
Sygnum has been offering numerous cryptocurrency services since its launch. TheCryptoBasic reported in August that Sygnum added Cardano (ADA) to its bank-grade staking offering, allowing its clients to stake the cryptocurrency and earn rewards. In July, Sygnum became the first regulated bank to offer Ethereum (ETH) 2.0 staking with a 7% APY.
“Sygnum clients can participate in the new proof-of-stake Ethereum and benefit from potentially higher staking rewards now. This is a compelling choice for long-term investors in the Ethereum ecosystem,“ Sygnum’s Head of Accounts and Custody Thomas Brunner said.
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