“Trust is fragile – it needs constant care and humility”

Sygnum is constantly evolving. But looking back, I would highlight five key success factors: Firstly, Sygnum has a long-term mission – “empower everyone everywhere to own digital assets with complete trust” – which is shared by the entire workforce. We have always operated with the credo “Future has Heritage”. Digital assets need to be regulated to drive their adoption. Even in the depths of the crypto winter, Sygnum has never lost its belief in the long-term disruptive, positive impact of blockchain technology on society. Secondly, Sygnum has a strong corporate culture based on the four SYGN values. We consistently live by our values, even if this sometimes calls for difficult decisions. Thirdly, opting for Switzerland and Singapore as the initial jurisdictions was an important factor. Both are countries with advanced regulation for digital assets, and we are proud to be based in these jurisdictions. The fourth factor is our strong governance. We established a board of directors at an early stage, the majority of whom are independent directors with relevant experience. Sygnum also has an advisory board with experienced and well-connected consultants. The fifth factor I would add is our strategic partnerships with leading local and global brands, which were particularly important at the beginning.

Sygnum has earned this trust through longterm thinking, strong governance, undergoing rigorous regulatory processes such as a banking license and ongoing supervision, and a down-to-earth mindset that we call “Confidence without Attitude”. Our licences and registrations in major financial centers such as Switzerland and Singapore – and now also Liechtenstein and Abu Dhabi, with more to follow – are instrumental in building trust. Perhaps most importantly, however, we are aware of how fragile trust is and that it requires continuous and humble investment to maintain and build it. Another trust-building factor is that B2B2C and B2B business reinforce each other: The more end customers use Sygnum, the more intense the discussion of the topic becomes in the boards of directors and executive boards of banks, which in turn has a positive impact on the B2B business. Increasing cooperation with banks and established brands is also strengthening trust in the direct-to-customer business. In addition, we are uncompromising in our “compliance first” approach, as this is a fundamental element of our strategic orientation to provide financial services in the field of distributed ledger technology in a regulated environment. For example, Sygnum has made significant investments in the internally developed compliance tool C-AML. C-AML is a proprietary AML tool for cryptocurrencies that is independently audited on a regular basis and that Sygnum also licenses out to other financial services providers.

I would describe Switzerland as a first mover in terms of regulatory and legal clarity in the context of digital assets. Sygnum is a prime example of this: In August 2019, we became the first bank in the world to receive a banking license specializing in the handling of digital assets. Singapore also values openness to new technologies and innovative business models. I would therefore describe Singapore as a fast follower in the area of digital assets. Singapore and Switzerland are known for regulators who think long-term and act cautiously. Both are heavily involved in the international context, which currently means that both Switzerland and Singapore have to be careful not to lose the advantage they have gained in the area of digital assets. The focus of our business strategy in Switzerland is on providing holistic financial services for digital and traditional assets under our banking license and on expanding into Europe via our MiCAR license. In Singapore, our focus is on asset management, investment banking and advisory as well as the custody and trading of digital assets via the “Major Payments Services” and “Capital Markets Services” licences. Singapore is also our Asian hub for further expansion into Hong Kong.

Both financial centers continue to have a good chance of establishing themselves positively in the digital assets sector in the long term. It is important that they do not slow down in terms of innovation or even regress as a result of temporary international pressure. Sygnum also sees itself as part of the digital asset ecosystem and is actively involved in initiatives such as the Swiss Bankers Association’s Deposit Token initiative.

Swiss customers are accustomed to a sophisticated and professional banking environment and have high expectations when it comes to personalized service. In Singapore, customers are more price-sensitive and at the same time have a higher risk tolerance. Both locations are characterized by high demands in terms of digitalization and security standards.