Financial news

Since the regulatory clarifications enabling Luxembourg-based alternative investment funds (AIFs) to invest in digital assets in 2021, the demand for institutional-grade crypto services has risen significantly. To take advantage of this market opportunity, Sygnum is expanding its Swiss-regulated crypto offering into Luxembourg market.

Targeted at AIFs and institutional investors, Sygnum’s crypto custody offers convenient and secure access to the expanding universe of crypto assets. As a regulated Swiss bank, Sygnum holds client assets off balance sheet in a fully segregated manner which eliminates all counterparty risks towards Sygnum and provides complete peace of mind to investors.

Sygnum’s B2B banking services enables banks and local depositaries to offer regulated crypto services to their end clients in order to continually expand and future-proof their offering. The solution, already live with 15 banks, provides fast, modular access to Sygnum’s entire suite of banking services through one entry point, including segregated client wallets, institutional-grade crypto trading, custody, staking and tokenisation.

“Sygnum’s international expansion into Luxembourg enables access to digital asset funds in the world’s second biggest fund and asset management investment market. 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 and hedge funds.

Sygnum selected Luxembourg as part of its international expansion strategy due to its clear regulatory frameworks, growing adoption and strong local demand for trusted, institutional-grade crypto services. Luxembourg is Europe’s largest fund centre with 27 per cent market share and AuM of CHF 6tn. AIFs have also grown by over 30 per cent in the past three years, fuelled by the EU Alternative Investment Fund Managers Directive (AIFMD) which enables Luxembourg asset managers to ”passport” their management services and easily distribute funds throughout the EU.