Sygnum Bank to announce $50M stake in Matter Labs for transparency
Switzerland-based global digital asset banking group Sygnum will invest $50 million in the Fidelity Institutional Liquidity Fund on behalf of client Matt Laub. Those funds will be taken as the first step in Matter Labs' long-term strategy to move all of its treasury stock with institutional custodians.
The funds will be tokenized on the Ethereum-based zkSync Layer-2 blockchain, which MatLabs envisions. The tokenized funds represent Matter Labs' holdings in the Fidelity Institutional Liquidity Fund, a $6.3-billion umbrella open to money-market funds based in Ireland.
The funding is intended to provide transparency to Matter Labs' reserve inventory verification. “Our $50m investment in the zkSync blockchain demonstrates our commitment to institutional-level security and transparency,” said Marco Cora, senior vice president of business and operations at Meter Labs, in a statement.
This is the first time Sygnum has held traditional securities. Matthias Imbach, Signum's founder and group CEO, commented on the deal at the Digital Asset Summit 2024, currently taking place in London. he said:
“We believe in permissionless public blockchains, but at the same time, we believe in the value of compliance and compliance, regulation, etc. So we see the role of helping different ecosystem players work together.”
The zkSync blockchain was launched in 2015. Founded in 2018 to provide scalability for Ethereum DApps. After receiving Series C funding of $200 million in November 2022, the public network launched in April 2023. It reached a high of $870 million in total value locked (TVL) on March 10 and had 715 million TVL on March 19, L2BEAT reported.
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Sygnum in 2010 It claims to be the first bank to liquidate its own assets in 2020. In the same year, it started offering its customers access to cryptocurrency staking, starting with Internet Computing and Tezos, and added Ether the following year and Cardano in 2022.
The bank's Sygnum Singapore subsidiary received a major payment institution license in October 2023, allowing it to offer crypto brokerage services to accredited investors and institutions. Signum does not accept US customers.
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