1

ETH RISK DAY 13.09.2019Martin Burgherr – Sygnum – Chief Clients Officer

3

No institutional investor

grade digital assetcustody

No institutionalinvestor grade &

fully regulatedbrokerage

No reliable, fiat-backed

gateway TokenNo scalable tokenization

infrastructure(digital assets securitization)

No onshore regulator approved KYC/AML gateway between fiat and

digital assets

Cumbersome customer

experience(ease of use)

InstitutionalInvestors

RetailInvestors

ServiceProviders

Digital Asset Managers

Blockchain Start-ups

Relevant Regulators

No regulator approved

tax & complianceservices

Lack of trust in digital asset ecosystem

4Source: “Global FinTech Report”, PwC (2017); “The future of financial infrastructure”, WEF (2016); coinschedule.com (2018)

Key value drivers for DLT use cases

Regulatory efficiency improvement

Counterparty risk reduction

Clearing and settlement efficiency

Liquidity and capital improvement

Fraud minimization

77% of financial services companies are expected “to adopt blockchain as part of an in-production system or process by 2020”

90+ central banks engaged in DLT discussions worldwide

77%

90+

Operational standardization

5

Sygnum is the world’s first digital asset bank, founded onSwiss and Singapore banking heritage, operating globally

Sygnum empowers institutional and private qualified investors, corporates, banks and other financial institutionsto invest in the digital asset economy with complete trust

The company is the first Swiss digital asset specialistwith an independently controlled, scalable andfuture-proof regulated banking solution

Sygnum’s interdisciplinary team of banking, investment and Distributed Ledger Technology (DLT) experts are shaping the development of a trusted digital asset ecosystem

6

4

5

3 6

B2B BANKING SERVICESAdd regulated digital asset banking service to your business

Enable existing financial institutions to provide regulated digital asset products and services to their own clients.

CUSTODYStore your digital assets with institutional-grade trust

Sygnum’s custody infrastructure, co-developed with Swisscom, is built with a multi-layer security approach enabling clients to invest in digital assets with complete trust

BROKERAGEDigital asset trading

Seamless trading of digital assets through a secure fiat – digital asset gateway.

ASSET MANAGEMENTDiversify

Diversified exposure to an emerging megatrend

TOKENIZATIONManage securities and raise capital more effectively by tokenizing existing assets

The tokenization solution is built to improve the life-cycle management of securities issuance and investment, enabling issuers, such as SMEs, to reduce cost and time spent on raising capital and managing corporate actions

CREDITIncrease liquidity with digital asset lombard loans

Lombard loan products are designed to increase fiat liquidity against digital assets such as Bitcoin

and Ethereum

1

2

7Source: ComplyAdvantage

“… Swiss blockchain sector continues to grow: over 600 companies … located in the ‘Crypto Nation’ and neighbouring Liechtenstein… employs around 3000 people.” Swissinfo.ch, October 2018

“Singapore’s Central Bank Will Aid Crypto Startups in Opening Bank Accounts” CCN, October 2018

“... application of blockchain technology has innovative potential within and far beyond the financial markets.

FINMA CEO, Mark Branson , February 2018

“We recognize the potential that FinTech and blockchain technology offer to the Swiss financial services industry. We have repeatedly demonstrated our commitment to innovation.”

FINMA CEO, Mark Branson, March 2018

For the first time, FINMA has issued banking and securities dealers’ licences to two pure-play blockchain service providers.

finma.ch, August 2019

91. As described in Sygnum “Token Classification” policy; 2. FINMA definitionsSource: MME BCP Framework; Sygnum BCP AML Risk Framework.

Asset Token2 (Asset tokens represent assets)

Utility Token2 (access to an application or service of a blockchain-based infrastructure)

Payment Token2 (means of payment)

BCP class 1 (BCP1) BCP class 2 (BCP2)

Utility/ application: Can be transferred on a decentralized ledger, but do not grant any rights towards a counterparty.

BCP with a native utility, but no right against a counter-

party

Utility Token

Payment Token

Specifics

Asset Token

Payment Token or Asset Token

BCP2 is used in the context of relative rights against a counterparty. A relative right includes a (legal) right to use the BCP generator’s services, to receive a financial payment, to receive an asset or other shareholder rights.

BCP with a relative right context against a counter-

party

Equity (Asset) Right

BCP1

BCP2_E

BCP2_CR

BCP

BCP = “Blockchain Crypto Property”. A BCP is a digital (or crypto) information unit which is functionally equivalent to a property right created through blockchain technology (also called “distributed ledger technology” in a wider sense).

Can be described with BCP

framework

BCP2_CN

Contractual (Asset) Right: By regulated issuer, e.g. central bankContractual (Asset) Right: By non-regulated issuer, e.g. miles and more

BCP2_PayITNo direct mapping BCP2_CustodIT

Transfer instruction tool for fiat book money transfers

Dir

ect1

Ind

irec

t1

Transfer instruction tool for assets in custody, such as art, material goods

10

Sygnum proprietaryrisk assessment funnel

Underlying technology

Storage & access

Regulatory

Market

Selected regulatory challenges

Capital adequacy rules for digital assets

Anti-money-laundering regulations- Digital asset screening- Holistic monitoring of digital

asset and fiat flows- Transmitting transaction

information

Risk modelling for digital assets

Market conduct rules

think

discusssolve

12

Integrated banking services to securely issue, store, trade and

manage digital assets

Enterprise grade, fully compliant custody solution

Build, load and operate financial market infrastructure

Integrated equity issuance solution

Trusted Distributed LedgerTechnology infrastructure

*

13

− Stable and reliant instrument to participate in the future of fundraising

− Secure tool to pause between periods of cryptocurrency investment activities

− Executing corporate actions in a non-volatile currency

− Risk-free peer-to-peer cryptocurrency payment option

Bank’s competitive advantage

− Bank’s as a highly trustworthy custodian for partners

− CHF as a strong underlying currency globally (safe haven reputation)

DCHF as a solution

− 1:1 backed, collateral-efficient stable coin

− For each DCHF issued, CHF 1 is held in the holder’s fiat account

− National banks remain in control of supply of digital CHF

− Non-decentralized solution held within legally-compliant and supervised ecosystem

Selected use cases

Disclaimer

This document was prepared by Sygnum AG. This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum AG, its affiliates and partners at thetime of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf ofSygnum AG to purchase or sell assets or securities. It is not intended to be used as a general guide to investing, and should be used for informational purposes only. When making an investment decision, you should eitherconduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable.However, Sygnum AG makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.