Zurich – Sygnum, a global digital asset banking group, has launched Sygnum Connect, the world’s first 24/7 multi-asset instant settlement network. This service facilitates the settlement of fiat, digital assets and stablecoins and targets institutional investors, liquidity providers, stablecoin issuers, brokers and select exchanges, with the aim of transforming financial operations with efficient, on-demand liquidity.
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While SWIFT has explored tokenization initiatives and blockchain experiments, including recent proof-of-concept (POCs) to unlock their potential, Sygnum Bank has already achieved what SWIFT is aiming for. Sygnum Connect effectively solves the T+1 synchronization problem for thousands of institutions, significantly reducing counterparty risk and improving capital market efficiency. This innovation has profound implications for market structure and trading strategies.
Sygnum Connect fills the gap in the industry by providing a comprehensive solution that delivers capital efficiency, on-demand liquidity and institutional standards necessary for the future growth of the digital asset ecosystem.
The network provides instant, 24/7 free settlements between network members, eliminating counterparty and settlement risks. It fully complies with strict Swiss regulatory, legal and safety standards.
Strong institutional support
Sygnum already has more than 2,000 institutional clients on board, including big names such as Revolut, Worldpay, BNP Paribas, BNY Mellon and eToro. The network is launching with existing partners such as regulated digital asset exchange AsiaNext, prime broker Hidden Road and liquidity provider B2C2, along with connectivity to more than 200 of Sygnum’s major trading clients.
Thomas Eichenberger, Chief Product Officer at Sygnum Bank, stated:
“Sygnum Connect solves an important piece of the settlement puzzle by making transactions between participants in the global crypto ecosystem faster, cheaper, less risky and more reliable. Sygnum Connect makes a significant contribution to the traditional connectivity of financial systems by enabling professional and institutional market participants to invest and transact with complete confidence in the digital asset economy.”
Thomas Eichenberger, CPO at Sygnum Bank
Sygnum Connect Offers:
Instant, 24/7 settlement for fiat, digital assets and stablecoins.
Elimination of counterparty and settlement risks between network members.
Full compliance with strict Swiss regulatory, legal and safety standards.
Access via the Sygnum banking platform, APIs and the Fireblocks platform.
Add-on services including Lombard loans, FX conversions, and stablecoin minting and exchanging.
Members will have access to instant payments in fiat currencies of USD, EUR, CHF and SGD, with additional digital assets such as Bitcoin, Ethereum and stablecoins to be added in Q3 2024. The network’s scope is further expanded by services such as concurrent delivery versus payment transactions, on-demand Lombard lending, FX conversions, and stablecoin minting and exchange.
“The ability to instantly settle fiat, digital payment tokens, stablecoins and tokenized money market funds (used as collateral) 24/7 is a game changer for institutional liquidity and capital efficiency. AsiaNext is excited to deploy Sygnum Connect to our trading members, and we look forward to working closely together in the future.”
Kok Kee Chong, CEO of AsiaNext
Traditional settlement processes often introduce capital inefficiencies and unnecessary complexity and delays, during which time assets are unavailable for investment or trading. Before the launch of Sygnum Connect, there was no instant multi-asset settlement network that offered the capital efficiency, on-demand liquidity and institutional standards that professional and institutional market participants increasingly require.
This launch coincides with a potential turning point for institutional adoption, driven by factors such as Bitcoin spot ETFs, rising stablecoin flows, and Tier 1 asset managers moving more of their assets on-chain. Sygnum Connect positions itself as a stabilizing force amid market volatility, providing a comprehensive, efficient and secure solution for the digital asset market.