SINGAPORE (THE BUSINESS TIMES) - Digital asset bank Sygnum, licensed in Singapore and Switzerland, has raised $120 million in an oversubscribed Series B funding round led by Hong Kong-listed alternative investment company Sun Hung Kai & Co.
The round gives Sygnum a post-money valuation of over $1 billion.
This boost in valuation was also underpinned by a tenfold increase in consolidated gross revenues in 2021, an institutional client base nearing 1,000 and assets under administration growing to over $3 billion, the company said on Thursday (Jan 6).
Other significant backers in the round include Canadian investment firm Meta Investments, blockchain gaming companies Animoca Brands and WeMade, as well as Sygnum's existing investors, including SBI Holdings and Siam Commercial Bank's digital investment arm SCB 10X.
As with prior funding rounds, the Series B also drew participation from a large group of employees as personal investors. These individuals, together with Sygnum's co-founders, board members and management team, continue to hold majority ownership of the company, Sygnum said.
Proceeds will boost Sygnum's development of new, institutional-grade services in what has become known as Web 3.0, which is characterised by a decentralised Internet and artificial intelligence-driven services.
Some of Sygnum's new offerings include additional yield-generating products, like white-listed DeFi (decentralised finance) pools and expanded staking services, asset management solutions and new commercial partnerships with blockchain ecosystems.
The funds raised will also enable Sygnum to launch its market-tested offerings into new global markets and expand its Singapore operations.
The company currently has a Swiss banking licence and a Singapore asset management licence.
Its co-founder and chief executive Mathias Imbach called the round a "key milestone" in the company's mission to "empower everyone everywhere to own digital assets with complete trust".
"The digital asset economy is rapidly crossing the chasm to mainstream adoption, where investors will demand fully regulated solutions as they accelerate their exposure," he said.
Sun Hung Kai & Co's group executive chairman Lee Seng Huang said his company has a strategic vision to expand its fund management offerings into digital assets.
"Amid growing institutional demand and regulatory oversight of this sector, Sygnum, with its track record as a fully regulated digital asset bank and asset manager, is the ideal partner for us to co-develop digital asset-focused products together, and to cater to the strong demand for digital asset solutions and services in Asia, Europe and beyond," he said.