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 settlements for fiat, digital assets, and stablecoins, catering to institutional investors, liquidity providers, stablecoin issuers, brokers, and selected exchanges, aiming to transform financial operations with efficient, on-demand liquidity.
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While SWIFT has been exploring tokenization initiatives and blockchain experiments, including recent proof-of-concept (POCs) for unlocking their potential, Sygnum Bank has already achieved what SWIFT aspires to. Sygnum Connect effectively resolves the T+1 synchronization problem for thousands of institutions, significantly reducing counterparty risk and enhancing capital market efficiency. This innovation has profound implications for market structure and trading strategies.
Sygnum Connect fills the industry gap by providing a comprehensive solution that delivers capital efficiency, on-demand liquidity, and institutional-grade standards required for the digital asset ecosystem’s future growth.
The network offers instant, 24/7 settlements, free of charge between network members, and eliminates counterparty and settlement risks. It is fully compliant with stringent Swiss regulatory, legal, and security standards.
Strong Institutional Backing
Sygnum has already onboarded over 2,000 institutional clients, including major names such as Revolut, Worldpay, BNP Paribas, BNY Mellon, and eToro. The network launches with existing partners like regulated digital asset exchange AsiaNext, prime broker Hidden Road, and liquidity provider B2C2, along with connectivity to more than 200 of Sygnum’s high-volume 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 is making a significant contribution to traditional financial system connectivity by empowering professional and institutional market participants to invest and transact in the digital asset economy with complete trust.”
Thomas Eichenberger, CPO at Sygnum Bank
Sygnum Connect Offers:
Instant, 24/7 settlements for fiat, digital assets, and stablecoins.
Elimination of counterparty and settlement risks between network members.
Full compliance with stringent Swiss regulatory, legal, and security standards.
Access through the Sygnum banking platform, APIs, and the Fireblocks platform.
Add-on services including Lombard loans, FX conversions, and stablecoin minting and redemption.
Members can access instant settlements in USD, EUR, CHF, and SGD fiat currencies, with additional digital assets like Bitcoin, Ethereum, and stablecoins being added in Q3 2024. The network’s scope is further expanded by services such as simultaneous delivery vs-payment transactions, on-demand Lombard loans, FX conversions, and stablecoin minting and redemption.
“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 leverage Sygnum Connect for our trading members, and we look forward to collaborating closely moving forward.”
Kok Kee Chong, CEO at AsiaNext
Traditional settlement processes often involve capital inefficiency and add unnecessary complexity and delays, during which time assets are unavailable for investment or trade. Before the launch of Sygnum Connect, there was no instant multi-asset settlement network providing the capital efficiency, on-demand liquidity, and institutional-grade standards that professional and institutional market participants increasingly require.
This launch coincides with a potential institutional adoption inflection point, 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 amidst market volatility, offering a comprehensive, efficient, and secure solution for the digital asset market.