TLDR
- Sygnum Bank announced profitability in the first half of 2024, accompanied by doubled crypto trading volumes.
- The bank experienced a 500% surge in crypto derivatives trading and a 360% increase in loan volume.
- Sygnum credits the growth to the approval of Bitcoin and Ethereum ETFs in the US.
- The bank is aiming to expand in Europe and achieve full MiCA compliance by Q1 2025.
- Sygnum also seeks to broaden its regulated offerings in the Asia-Pacific region.
Sygnum Bank, a financial institution managing $4.5 billion in client assets, has revealed profitability for the initial segment of 2024.
The bank noted a notable rise in crypto trading volumes and other essential metrics, indicating robust growth in the crypto banking sector.
According to Sygnum, crypto spot trading volumes doubled compared to the previous year’s equivalent period.
In addition, the bank witnessed a remarkable 500% surge in crypto derivatives trading and a 360% upsurge in loan volume.
These impressive statistics mirror the increasing interest in cryptocurrency investments and services.
Expressing his views, Martin Burgherr, Sygnum’s Chief Client Officer, highlighted the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States as a pivotal catalyst for this expansion.
“The approval and launch of Bitcoin and Ethereum ETFs were a groundbreaking moment for the crypto sector this year, leading to a significant uptick in demand for trusted, regulated exposure to digital assets,” Burgherr affirmed.
Expanding Services and Client Base
The successful trajectory of Sygnum transcends trading volumes. Their staking-as-a-service provision has gained traction, with 42% of all Ether held by Sygnum customers now being staked.
The bank emphasized that staking Ethereum offers distinctive advantages for institutional clients that surpass the current constraints of ETF frameworks, which do not factor in staking yields.
Sygnum’s clientele is nearing the 2,000 mark, including institutional and professional investors from over 60 countries. The institution has expanded its B2B collaborations, presently working with over 20 banks and financial organizations. These partnerships enable more than a third of the Swiss population to engage in crypto trading through their primary banks.
Katalin Tischhauser, Sygnum’s Head of Investment Research, weighs in on the recent launch of Ethereum spot ETFs:
“I anticipate robust demand over the next 12 months from traditional institutional investors. , the premier smart contract platform with a plethora of applications… pic.twitter.com/jYyyc4BrRW
— Sygnum Bank (@sygnumofficial) July 24, 2024
Future Expansion
Looking forward, Sygnum harbors ambitious plans for expansion. The bank is setting its sights on further growth within the European market and aims to achieve full compliance with the European Union’s new Markets in Crypto-Assets (MiCA) Regulation by the initial quarter of 2025.
Despite Switzerland’s non-membership in the EU, Sygnum has been licensed in Luxembourg since 2022, providing them with a foothold in the EU market.
Beyond Europe, the focus of Sygnum extends to the Asia-Pacific region. The institution already has a presence in Singapore and intends to diversify its regulated offerings to other nations in the region, including Hong Kong, in the forthcoming months.
The growth of Sygnum aligns with the escalating institutional interest in cryptocurrencies. The bank offers various crypto-related exchange-traded products, such as the Sygnum Platform Winners Index ETP, which encompasses a variety of large-market cap cryptocurrencies.
The recent triumphs of the bank follow a $40 million capital raise in January, valuing Sygnum at $900 million. This funding cycle, spearheaded by asset manager Azimut Holding, has solidified the bank’s position for ongoing expansion endeavors.
Hot Take
Sygnum Bank registered notable growth and profitability in the first half of 2024, underpinned by a surge in crypto trading volumes and key metrics. The institution’s strategic plans for expansion in Europe and the Asia-Pacific region, coupled with its commitment to regulatory compliance, position Sygnum as a prominent player in the evolving realm of crypto banking.
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