Following the collapse of two crypto-friendly American banks, two Swiss banks have stepped in to plug the leak.
America’s Silvergate Exchange Network and Signature Bank, both collapsed in March 2023. Prior to them going under, they played a key role in providing liquidity to the crypto market. Switzerland’ Amina Bank and Sygnum Bank have recently launched real-time payment and settlement networks, Bloomberg reported.
On the offering, Sygnum’s Chief Product Officer, Thomas Eichenberger, said, “The liquidity gap in the crypto market has still not been closed to the extent that professional market participants would’ve wished for,” Eichenberger said. He added that Sygnum’s service “mostly targets clients in Europe and Asia.”
Crypto Investors Seek Alternatives To Silvergate and Signature Following Collapse, Swiss Banks Come To Rescue
Swiss Banks – AMINA and Sygnum – aim to plug round-the-clock support for payments in #crypto assets ?#Switzerland is an island of crypto progress in the heart of Europe ??? pic.twitter.com/XH6Jxp28JW
— Polina | Coinfest Bali 2024 ? (@polinochkaoops) July 24, 2024
Silvergate processed $117 billion in transfers in the quarter before it voluntarily liquidated. On an even larger scale, Signet handled $275.5 billion before being taken over by US regulators.
This has left digital asset holders seeking crypto-friendly banking alternatives.
Amina and Sygnum are hoping to fill that void. They are both new to the market, with their platforms being live only for a few weeks. They will be offering a 24/7, round the clock network for instant transactions in both fiat currencies and more importantly, cryptocurrencies. The banks said that there will be no fees for transfers between registered network members.
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Eichenberger went on to say that the recent approval of Circle’s popular USDC as a MiCA compliant stablecoin is “a big step.” Sygnum Connect enables users to mint and redeem stablecoins instantly and eliminates counterparty and settlement risk between network members.
“The ability to instantly settle fiat, digital payment tokens, stablecoins and tokenised 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… https://t.co/tcubRytLlI
— AsiaNext (@ASNXT_official) July 11, 2024
Furthermore, Singapore-based crypto exchange, AsiaNext, announced a partnership with Sygnum related to its new settlement network.
AsiaNext’s CEO, Kok Kee Chong commented, “The ability to instantly settle fiat, digital payment tokens, stablecoins and tokenised 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.”
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
