Sygnum Bank, a Swiss crypto bank managing $4.5 billion in client assets, has announced its profitability following a significant increase in crypto trading volumes during the first half of 2024.
Trading Volumes and Market Impact
In a statement released on July 25, Sygnum reported a two-fold increase in crypto spot trading volumes and a 500% surge in crypto derivatives trading compared to the same period last year. Loan volumes also rose by 360%.
Martin Burgherr, Sygnum’s Chief Client Officer, credited the growth to the recently approved spot Bitcoin exchange-traded funds (ETFs) in the United States. “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 explained. “This is also reflected in Sygnum’s own growth, with our core business areas seeing a significant YTD increase in H1.”
Sygnum offers various crypto-related exchange-traded products, including the Sygnum Platform Winners Index ETP, which holds assets like Bitcoin, Ether, Solana, Cardano, and Polkadot. Additionally, the bank has seen more clients opting to stake their Ether through its staking-as-a-service offering, now accounting for 42% of all Ether held by Sygnum customers.
Also Read: Spot Ethereum ETFs Debut with Over $1 Billion in Trading Volume
Strategic Expansion Plans
Valued at $900 million following a $40 million capital raise in January, Sygnum is planning further expansion into the European market. The bank aims to be fully compliant with the European Union’s Markets in Crypto-Assets Regulation (MiCA) by the first quarter of 2025. While Switzerland is not part of the EU and therefore not bound by MiCA, Sygnum has been licensed in Luxembourg since its launch in 2022.
Sygnum has partnered with over 20 business-to-business banks and financial institutions, enabling a third of the Swiss population to trade crypto through their primary banks. The bank’s institutional and professional investor client base is now approaching 2,000.
In addition to its presence in Europe, Sygnum operates an office in Singapore and plans to expand its regulated offerings into the Asia-Pacific region, including Hong Kong, in the coming months.
