FINTECH startup Sygnum on Friday announced its partnership with blockchain company daura to build a solution to securely issue digital assets such as tokenised shares and investment products.
Sygnum - which counts Singtel Innov8, the venture capital arm of Singtel Group, as one of its investors - was founded by a team of Swiss and Singaporean professionals. It develops its products and services simultaneously in the financial hubs of Switzerland and Singapore.
Mathias Imbach and Gerald Goh, founding partners of Sygnum, said that in the first phase, their planned offerings will target qualified or accredited institutional investors. In the second phase, it will offer bank-to-bank technology solutions to empower other financial institutions to provide services to the token economy.
Sygnum and Swiss telco Swisscom have also formed a joint venture for the secure storage of digital assets, called Custodigit.
Sygnum said it aims to enhance today's financial services infrastructure with the possibilities of distributed ledger technologies and digital assets - with blockchain being today's most prominent example of the distributed ledger technology.
As strategic partners, Sygnum, Swisscom and daura will build a digital asset ecosystem addressing the pain points of integrating the digital ledger technology into the financial industry. Pain points include the absence of regulated fiat-digital gateways and the lack of compliant and secure custody solutions for digital assets, among other things.
Peter Hofmann, senior fintech expert at Swisscom and interim CEO of Custodigit, said: "The cooperation of Sygnum and Custodigit combines unique know-how in the fields of digital assets, banking, compliance and technology. This fosters the development of a digital assets custody platform for the regulated financial industry."
Sygnum, in partnership with Swiss law firm MME, is also developing an anti-money laundering/know your customer (AML/KYC) module that aims to fit seamlessly into the Swiss regulatory framework. It merges compliance-relevant blockchain-based information with existing AML concepts.
Singtel Innov8 declined to disclose the size of its investment in Sygnum. The strategic investment is the group's first in distributed ledger technologies.
Edgar Hardless, chief executive of Singtel Innov8, said that Innov8’s investment approach is to identify startups that have developed innovative technologies and solutions with the potential to create significant value.
"We believe Sygnum’s solutions can help address the needs of the digital asset economy that has experienced unparalleled growth in recent years," he said.