TLDR
- Sygnum Bank reported profitability in the first half of 2024, with doubled crypto trading volumes.
- The bank saw a 500% increase in crypto derivatives trading and a 360% rise in loan volume.
- Sygnum attributes growth to the approval of Bitcoin and Ethereum ETFs in the US.
- The bank plans to expand in Europe and become fully MiCA compliant by Q1 2025.
- Sygnum is also looking to expand its regulated offerings in the Asia-Pacific region.
Sygnum Bank, a Swiss crypto bank managing $4.5 billion in client assets, has announced profitability for the first half of 2024.
The bank reported a significant increase in crypto trading volumes and other key metrics, signaling strong growth in the crypto banking sector.
According to Sygnum, crypto spot trading volumes doubled compared to the same period last year. The bank also saw a remarkable 500% increase in crypto derivatives trading and a 360% rise in loan volume.
These impressive figures reflect the growing interest in cryptocurrency investments and services.
Martin Burgherr, Sygnum’s Chief Client Officer, pointed to the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States as a major factor driving this growth.
“The approval and launch of Bitcoin and Ethereum ETFs were a watershed moment for the crypto sector this year, leading to a major increase in demand for trusted, regulated exposure to digital assets,” Burgherr stated.
The bank’s success extends beyond trading volumes. Sygnum’s staking-as-a-service offering has gained popularity, with 42% of all Ether held by Sygnum customers now being staked.
The bank highlighted that for institutional clients, staking Ethereum offers unique benefits that go beyond the current limitations of ETF frameworks, which do not include staking yields.
Sygnum’s client base is approaching 2,000, including institutional and professional investors from over 60 countries. The bank has also expanded its business-to-business partnerships, now working with more than 20 banks and financial institutions. These partnerships enable over a third of the Swiss population to trade crypto through their primary banks.
Katalin Tischhauser, Sygnum’s Head of Investment Research, comments on yesterday’s launch of the Ethereum spot ETFs:
“I expect strong demand over the next 12 months from traditional institutional investors. #Ethereum, the leading smart contract platform with a multitude of use… pic.twitter.com/jYyyc4BrRW
— Sygnum Bank (@sygnumofficial) July 24, 2024
Looking ahead, Sygnum has ambitious expansion plans. The bank is eyeing further growth in the European market and aims to become fully compliant with the European Union’s new Markets in Crypto-Assets (MiCA) Regulation by the first quarter of 2025.
Although Switzerland is not an EU member, Sygnum has been licensed in Luxembourg since 2022, giving it a foothold in the EU market.
Beyond Europe, Sygnum is setting its sights on the Asia-Pacific region. The bank already has an office in Singapore and plans to expand its regulated offerings to other countries in the area, including Hong Kong, in the coming months.
Sygnum’s growth comes at a time of increasing institutional interest in cryptocurrencies. The bank offers several crypto-related exchange-traded products, including the Sygnum Platform Winners Index ETP, which holds a variety of large market cap cryptocurrencies.
The bank’s recent success follows a $40 million capital raise in January, which valued Sygnum at $900 million. This funding round, led by asset manager Azimut Holding, has helped position the bank for its current expansion efforts.
