Swiss bank Sygnum has recently announced the launch of a cryptocurrency brokerage service to cater to the high demand from institutional investors in developing markets. The move comes after the firm secured a license from Singapore’s Monetary Authority to provide institutional trading and custody services for cryptocurrencies. The brokerage service will focus on tokenized assets that can be exchanged more efficiently through blockchain technology.
According to Sygnum, the demand for brokerage services has increased following the failures of US-based banks, Silvergate Capital and Signature Bank. The firm will offer brokerage and custody services for digital assets and match buy and sell orders through its counterpart, Sygnum Bank in Switzerland. However, the brokerage service will not handle fiat on and off-ramps.
Meanwhile, over $6 billion worth of bitcoin and ether contracts are set to expire on the Panama-based Deribit exchange, which controls over 85% of global options activity. This includes 150,633 bitcoin options contracts valued at $4.57 billion and 1.23 million ether contracts valued at $2.3 billion. Investors have recently bought call options with strike prices at and above $30,000, meaning dealers may hold a significant amount of “negative (short) gamma” exposure, leading to a potential explosive rally or price slide.
In related news, Binance has reversed its plan to delist privacy coins for users in France, Italy, Spain, and Poland after revising operations to comply with local regulations. The move comes as the European Union has been ironing out its standards for digital assets with its new Markets in Crypto-Assets regulations, which were signed into law on May 31. The European Securities and Markets Authority plans to launch a consultation process in July.
Overall, these developments indicate a growing interest in cryptocurrency and blockchain technologies, especially in the institutional market. As these markets expand, more regulations are likely to be implemented to ensure investor protection and financial stability.