Digital asset bank Sygnum launched Connect, its 24/7 multi-asset instant settlement network. The network settles fiat, digital assets and stablecoin transactions along with tokenized money market funds used for collateral for institutional investors, liquidity providers, stablecoin issuers, brokers and selected exchanges.
Sygnum Connect instant settlement network:
- Fiat, digital asset and stablecoin settlements in one institutional-grade platform
- Instant 24/7 settlements, free between network members
- Eliminates counterparty and settlement risk between network members
- Fully compliant with stringent Swiss regulatory, legal and security standards
- Conveniently accessed through the Sygnum banking platform, APIs and the Fireblocks platform
- Add-on services include Lombard Loans, FX conversions and stablecoin minting and redemption
- Sygnum Connect launches with a strong existing partner network, including regulated institution-only digital asset exchange AsiaNext, prime broker Hidden Road and leading liquidity provider B2C2, in addition to connectivity to more than 200 of Sygnum’s institutional high-volume trading clients.
Network members have access to instant USD, EUR, CHF and SGD fiat settlements, with settlements for a wide range of digital assets like Bitcoin, Ethereum and stablecoins being added in Q3 2024. The network’s scope is further expanded by a range of Sygnum Connect add-on services, including simultaneous delivery-vs-payment transactions, on-demand Lombard loans, FX conversions, and stablecoin minting and redemption.
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 like Bitcoin spot ETFs, rising stablecoin flows and Tier 1 asset managers moving more of their assets on-chain.
Fireblocks, a digital asset infrastructure provider with over 1,800 institutional clients, will fully integrate the Sygnum Connect network into their platform in Q3 2024. This will enable network members, who are also direct Fireblocks users, to access fiat settlements through the Fireblocks Network, an enterprise-grade digital asset transfer platform for rapid digital asset transactions and dynamic payment workflow. This will significantly expand and simplify network access and avoid the added complexity of settling different types of assets through different platforms.
Kok Kee Chong, CEO at AsiaNext, said in a statement: “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.”
Michael Higgins, global head of Business Development at Hidden Road, said in a statement: “Digital asset market structure is undergoing an important transformation as it matures to meet the needs of institutional investors. Sygnum Connect’s 24/7 network across fiat and digital assets will bring added speed, efficiency and liquidity to market – priorities that Hidden Road and Sygnum share – and has the potential to improve settlement for institutions.”
Thomas Restout, B2C2 Group CEO, said in a statement: “This partnership with a major global digital asset banking group provides an additional channel for instant, multi-asset settlement. It represents another step forward in providing our clients with the industry-leading flexibility and speed necessary for navigating the dynamic digital asset market.”
Ran Goldi, senior vice president for Payments and Network at Fireblocks, said in a statement: “Payments have historically been bound by traditional 9-to-5 banking systems, as well as manual settlements and payouts, which have hampered the ability of businesses to move in and out of positions, as well as transfer funds, quickly. By integrating Sygnum Connect, Fireblocks Network users will be able to transfer fiat currencies between each other in real-time, 24/7, eliminating the need to wait for settlements to clear with counterparties and providing greater capital efficiency for network participants.”
Thomas Eichenberger, chief product officer at Sygnum Bank, said in a statement: “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.”