Singapore- and Switzerland-based digital asset bank Sygnum has raised over $40 million in an interim close of its latest funding round led by global asset management firm Azimut Holding.
The strategic growth round, which saw the participation of existing and new investors, has helped the firm to hit a post-money valuation of $900 million.
The company’s employees also invested in the latest round as individual investors. Sygnum co-founders, board members and management team hold majority ownership of the company following the round, the company said in a release on Thursday.
The fresh funding will help the firm in market expansion as well as extending its product offerings.
“The broader industry is emerging from the ‘crypto winter’ and investors and market participants are increasingly seeking to partner with trusted and well-managed financial institutions,” said Gerald Goh, co-founder and CEO of Sygnum Singapore.
Crypto venture capital funding had a tough year in 2023 that saw only one-third of VC investments logged in the previous year, according to a report published by the research arm of crypto investment firm Galaxy Digital. Despite the funding winter, 2023 saw the price of Bitcoin skyrocket over 160%, while Ether’s price went up 95% during the same period.
“For Sygnum, this fundraise will allow us to further build out our suite of fully regulated solutions to support investors as they increase their exposure to the asset class,” he added.
In 2023, the firm booked over $100 million in annualised revenue run rate and achieved positive cash flow in Q4.
The oversubscribed round, which went beyond its initial target of $35 million, comes after the firm sealed its $88.5 million (S$120 million) Series B round in January 2022 led by Hong Kong alternative financial services firm Sun Hung Kai & Co.
Founded in 2017, the firm offers regulated digital asset banking, asset management, tokenization and B2B services to professional and institutional investors. The digital asset bank holds a banking licence in Switzerland, as well as a capital market services (CMS) and Major Payment Institution Licences in Singapore. It is also regulated in Abu Dhabi and Luxembourg.