Sygnum Bank Achieves Profitability Amid Crypto Surge, Eyes European Expansion
Sygnum, the Swiss-based digital asset bank, has announced its first profitable period in the first half of 2024, marking a significant milestone in its growth trajectory. The bank reported substantial increases across its core business areas, driven by the recent approval of Bitcoin and Ethereum ETFs in the United States and growing institutional demand for regulated crypto exposure.
According to the bank’s statement, Sygnum experienced a two-fold increase in crypto spot trading volumes and a remarkable 500% rise in crypto derivatives trading compared to the same period last year. Lending activities also saw significant growth, with loan volumes surging by over 360%. The bank’s “Staking-as-a-Service” offering gained traction, with 42% of Ether held by clients now being staked.
Martin Burgherr, Sygnum’s Chief Client Officer, attributed this growth to the recent developments in the crypto market. “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,” he stated.
The bank’s client assets under management have grown to approximately $4.5 billion, up from $4 billion in January. Sygnum’s institutional and professional investor client base is approaching 2,000 globally, serviced by a team of over 250 people. The bank has also expanded its partnerships, now collaborating with more than 20 banks and financial institutions, enabling over a third of the Swiss population to trade crypto through their primary banks.
Following a $40 million funding round in January that valued the company at $900 million, Sygnum now holds over $125 million in equivalent core equity capital. The bank plans to leverage this capital for further expansion and development of new services.
Looking ahead, Sygnum has set its sights on significant expansion in the European Union. The bank aims to become fully compliant with the Markets in Crypto Assets (MiCA) regulation by the first quarter of 2025, allowing it to operate across the 30 countries in the EU and European Economic Area. Additionally, Sygnum is advancing its plans for regulated operations in Hong Kong and continues to build its presence in Singapore and Abu Dhabi.
