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Following a triumphant strategic funding round that netted over $40 million, global digital asset banking group Sygnum, under the guidance of co-founder and CEO Singapore Gerald Goh, is eyeing strategic growth and innovation. In a conversation with Blockhead, Goh elaborated on the company’s next steps, showcasing a keen blend of regulatory insight and optimism for the crypto sector's prospects.
Goh's strategy has always been clear-eyed about the potential and challenges of the digital asset sector. The exchange's recent funding success is testament to the confidence investors have in Sygnum's approach amidst the evolving digital asset landscape.
"With fresh funds obtained, we will be looking to expand into at least 2 new jurisdictions – 1 in the EU and 1 in APAC," Goh said, highlighting the ambition to bring Sygnum's regulated digital asset-focused products and services to a broader audience.
Tackling Regulatory Challenges
Sygnum's expansion is tempered by the need to align with local market and regulatory requirements. "Our aim is to replicate our comprehensive suite of regulated digital asset-focused products and services in these new markets," Goh highlighted, underscoring the company’s commitment to adaptability and client satisfaction in its scaling efforts.
Navigating regulatory landscapes is a cornerstone of Sygnum's strategy. Goh acknowledges the global trend towards clearer regulations but remained cautious about the challenges ahead and warned against complacency.
"Regulatory progress is still uneven and in some cases regulators run the risk of overreaching and becoming too prescriptive," he points out, stressing the importance of a balanced approach to foster broader mainstream adoption of digital assets.
Sygnum's dual headquarters in Switzerland and Singapore, both leading jurisdictions for digital asset regulation, place the company in a strong position to tackle these challenges, Goh noted.
Growing Investor Confidence
Sygnum's resilience and strategic clarity have bolstered investor confidence, a crucial asset during the crypto winter.
Goh attributes this to a "macro shift in the digital asset markets with activities gradually shifting away from unregulated or less well-regulated platforms and towards fully regulated financial institutions located in trusted jurisdictions like we are."
This trend, alongside Sygnum's operational resilience and eight consecutive quarters of improving revenue, has significantly bolstered investor confidence, Goh added.
Looking ahead, Goh is cautiously optimistic about the crypto market's prospects, especially with the potential for new bull cycles and the increasing institutional engagement.
"There are a number of signs that point to a new bull cycle," he observes, highlighting the enduring interest in Bitcoin's safe haven properties and Ether's potential revival. Goh also notes the growing relevance of AI and tokenization as transformative forces in the market.
"We are seeing institutional dominance with retail flows still lagging behind – this means that the big players are starting to engage with the asset class while retail adopts a wait-and-see stance. Also, long-term holders are keeping their investments, and that is usually a sign that there is a group of investors who believe things are about to get better," Goh said.
Sygnum’s strategic vision, Goh said, is to seamlessly integrate traditional and digital financial systems, leveraging the latest funding round to fuel global expansion and innovation.