Swiss bank Sygnum has opened a crypto brokerage to satisfy rising institutional demand benefiting crypto in developing markets.
The company recently secured a license from the Monetary Authority of Singapore to offer institutional trading and custody of crypto assets.
Sygnum Rides Institutional Demand Created by US Bank Failures
The firm noticed a spike in interest in institutional demand for brokerage services after the failures of US banks Silvergate Capital and Signature Bank.
Deposits of Swiss francs reached a record $3.3 billion at the end of last month, Sygnum’s Singapore CEO Gerald Goh said.
The company will offer brokerage and custody services for digital assets and will match buy and sell orders through its counterparty Sygnum Bank in Switzerland.
According to Goh, the crypto brokerage will not handle fiat on and off-ramps.
Meanwhile, Deutsche Bank AG recently filed an application to offer tokenized investments with German watchdog BaFin. Tokenized assets can be exchanged faster through blockchain technology than traditional payment rails.
Citigroup predicted that the total addressable market for tokenized assets would increase 80 times by 2030.
Recently, Wall Street firms BlackRock, Charles Schwab, and WisdomTree filed applications with the US Securities and Exchange Commission to launch Bitcoin exchange-traded funds. After the filings, Bitcoin surged above $30,000.
Developing Nations Eye Stability
Crypto adopters in several countries, including Pakistan and Nigeria, would have benefited from the increase in Bitcoin price.
In the past three weeks, Bitcoin has risen 71% against Pakistan’s rupee, with many young workers changing their salaries to stablecoins to preserve their value.
But higher institutional participation could also make Bitcoin a viable alternative. For example, market-making like Sygnum’s will improve Bitcoin’s market depth and keeps the asset stable.
Last year, Chainalysis ranked Pakistan sixth for global crypto
Learn Bitcoin trading for beginners here.
In Nigeria, incoming President Bola Tinubu vowed to ease the country’s complex exchange rate policy. Before Tinubu, the central bank sold limited dollars to companies and individuals to control the country’s reserves.
Now, shortages are driving currency devaluation, with inflation rising more than 22% in May.
Bitcoin can help citizens survive as newer measures to liberate dollar trade materialize. Meanwhile, a lack of confidence in monetary policy has led to an increase in online searches for Bitcoin.
Nigeria ranks eleventh on the Chainalysis crypto adoption index.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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