Sygnum Bank reaches profitability with a significant rise in crypto trading volumes and loan growth in H1 2024.
The Swiss crypto bank Sygnum Bank, which has $4.5 billion in client assets, has announced that it has achieved profitability following a significant increase in crypto trading volumes during the first half of 2024.
Sygnum disclosed a twofold increase in crypto spot trading volumes and a 500% increase in crypto derivatives trading in H1 2024 when contrasted with the previous year’s period in a statement issued on July 25. Additionally, the volume of loans increased by 360 percent.
Martin Burgherr, the Chief Client Officer of Sygnum, attributed the gains to the recently authorized spot Bitcoin exchange-traded funds in the United States.
“The approval and launch of Bitcoin and Ethereum ETFs were a pivotal moment for the crypto sector this year, resulting in a substantial surge in demand for regulated, trusted exposure to digital assets.”
“This is also reflected in Sygnum’s own growth, with our core business areas seeing a significant YTD increase in H1.”
Sygnum provides a variety of exchange-traded crypto-related products, including the Sygnum Platform Winners Index ETP, which comprises Bitcoin, Ether, Solana, Cardano, Polkadot, and other large market cap coins.
Additionally, an increasing number of clients are choosing to stake their Ether through Sygnum’s staking-as-a-service offering, which now comprises 42% of all Ether held by Sygnum customers.
Sygnum stated that institutional clients are afforded a distinctive advantage that surpasses the constraints of the ETF framework, which presently prohibits staking yields.
The bank, recently valued at $900 million following a $40 million capital raise in January, is seeking to further expand into the European market. It anticipates being entirely compliant with the European Union’s new Markets in Crypto-Assets Regulation by Q1, 2025..
Although Switzerland is situated in Europe, it is not affiliated with the European Union and, as a result, is not subject to MiCA.
Nevertheless, Sygnum has been licensed in Luxembourg, an EU member state, since the bank’s establishment in 2022.
Sygnum has announced that it has formed partnerships with over 20 business-to-business banks and financial institutions, which have enabled over one-third of the Swiss populace to trade cryptocurrency through their primary banks.
The bank’s institutional and professional investor client base is now approaching 2,000.
Sygnum maintains an office in Singapore and intends to broaden its regulated offerings to encompass the Asia-Pacific region, including Hong Kong, shortly.
