March 22, 2023 – Switzerland’s digital asset bank Sygnum has opened its Middle East hub in the Abu Dhabi Global Market (ADGM) as it seeks to tap into the growing high-net-worth-individual (HNWI) population and increasingly “crypto-active” wealth management market in the region.
The company received an in-principle approval from ADGM in October 2022 to expand its operations in Abu Dhabi.
The new branch will provide a portfolio of Swiss-regulated crypto banking services, the company said in a statement on Wednesday.
The bank is looking to tap into the huge affluent population and cash in on the multibillion-dollar crypto market. It noted that regional demand for regulated crypto services is now on the rise, with more than a third of residents in the UAE alone already invested in the local crypto market.
“With 35% of the UAE population already invested in the local $25 billion crypto market and over 1,400 crypto organisations locally-based, Abu Dhabi has the potential to become a future regional and international hub for Web3, metaverse and blockchain-based projects,” Sygnum said.
Sygnum Bank Middle East will offer personal, concierge-style services to clients in the region. The bank said it will enable customers to access a portfolio of Swiss-regulated digital asset banking, asset management, tokenization and B2B banking services.
“We believe that Sygnum’s regulated finance offering in Abu Dhabi is a significant addition to our community and will contribute to the growth of the region,” said Arvind Ramamurthy, Chief of Markets at ADGM.
“As the largest regulated jurisdiction for digital assets in the MENA region, ADGM acts as a catalyst with the right tools that enable the growth of such companies within the UAE’s financial sector.”
The UAE has been attracting a growing number of wealthy individuals. As of 2022, Dubai is home to 67,900 millionaires, 202 centi-millionaires and 13 billionaires, according to Henley & Partners.
As of September 2022, more than 1,400 organisations and 7,000 individuals are working in the UAE’s crypto and blockchain technology space, according to Crypto Oasis.
Image Courtesy: Gulf Capital