Japanese megabank SBI Holdings is investing in Swiss digital currency bank Sygnum, in a deal that could see capital of eight figures invested in the fast growing company.
Through its digital assets subsidiary, SBI is to lead the funding round, which will have totaled in excess of $30 million in investment over a period of six months.
The funds will be deployed to help Sygnum with its expansion efforts across Asia and Europe, with the bank seeking to capitalize on its Swiss banking license to grow its international client base.
The investment has taken SBI Holdings to new heights, with total assets under management now standing at approximately $500 million.
The funding comes as Sygnum weighs up its options for an initial public offering, expected to take shape over the coming months. The capital will also help the bank expand the scope of its custody services, its tokenization platform and secondary market platform.
Gerald Goh, co-founder and CEO at Sygnum Singapore, said the capital would help the firm realize its strategic goals through 2021.
“With this strong start to 2021, we look forward to working with our stakeholders to continue innovating new solutions, launching new products, and ultimately providing our clients the ability to participate in the fast-growing digital assets opportunity in a safe, convenient, and fully-regulated manner.”
The funding cements an existing business relationship between SBI and Sygnum, after the launch of a joint fund in late 2020, with an emphasis on investing in startups in the digital currency space.
The deal also allows SBI Holdings to take greater exposure to European markets, particularly in light of Sygnum’s much-coveted Swiss license, allowing for more streamlined provision across European markets.
It is also expected the funds will be used to help develop Sygnum’s API infrastructure for open banking.
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