Sygnum Bank, a Swiss crypto bank with $4.5 billion in client assets, has announced it has reached profitability after a huge spike in crypto trading volumes in the first half of 2024.
In a July 25 statement, Sygnum reported a two-fold increase in crypto spot trading volumes and a 500% rise in crypto derivatives trading in H1 2024 compared to the prior year period. Loan volume also spiked 360%.
Sygnum Chief Client Officer Martin Burgherr attributed the gains to the recently approved spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds 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.”
“This is also reflected in Sygnum’s own growth, with our core business areas seeing a significant YTD increase in H1.”
Sygnum offers several of its own crypto-related exchange-traded products, such as the Sygnum Platform Winners Index ETP which holds Bitcoin, Ether, Solana (SOL), Cardano (ADA), Polkadot (DOT) and other large market cap coins.
More clients are also opting to stake their Ether through Sygnum’s staking-as-a-service offering, which now accounts for 42% of all Ether held by Sygnum customers.
“For institutional clients, staking ETH presents a unique benefit beyond the limitations of the ETF framework, which currently excludes staking yields,” Sygnum said.
Sygnum Bank eyes further expansion
The bank, which was recently valued at $900 million after a $40 million capital raise in January, is now looking to expand further into the European market and expects to become fully compliant with the European Union’s new Markets in Crypto-Assets Regulation by Q1, 2025.
Although Switzerland is located in Europe, it is not a member of the European Union and, therefore, is not subject to the MiCA regulations.
However, Sygnum has been licensed in EU member state Luxembourg since the bank launched in 2022.
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Sygnum said it is now partnered with more than 20 business-to-business banks and financial institutions, enabling more than 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.
Sygnum also has an office in Singapore and plans to expand its regulated offerings into the Asia-Pacific region, including Hong Kong, in the months to come.
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