Crypto bank Sygnum reports profitable H1 2024 as crypto trading volume doubles 

Swiss crypto bank Sygnum has recorded profits in the first half of 2024 after witnessing a surge in crypto trading volume.

According to an announcement shared with crypto.news, the bank’s first-half spot crypto trading volume has doubled since 2023. This was complemented by a 500% growth in crypto derivatives volumes and a 360% surge in lending volumes.

Exact profit figures for the period were not disclosed at the time of publication.

The bank also noted strong growth in crypto transfer volumes from professional private investors, external asset managers and multi-family offices, crypto foundations, DLT companies, and funds and hedge funds, which account for the institution’s core clientele.

Spot Bitcoin Exchange Traded Funds and the anticipation of Ether ETFs were cited as the key drivers behind the growth. According to Sygnum Chief Client Officer Martin Burgherr, these new investment vehicles sparked demand for “trusted, regulated exposure to digital assets.”

Sygnum also recorded growth in its staking-as-a-service offering. The announcement highlighted a 42% increase in staked ETH. 

Staking has been excluded from Ether ETF offerings because the SEC views it as an investment contract. As such, the bank claims its staking offering is a “unique benefit  beyond the limitations of the ETF framework.”

The announcement also noted plans for expansion within the European Union. The bank has already been operating in Luxembourg since 2022 and plans to acquire licenses for the 30 countries comprising the EU and the European Economic Area by 2025.

The bank attributed its “strong business performance” and “regulated banking platform” as factors setting the stage for its MiCA-compliant entry.

Beyond the EU, the bank is looking to increase its foothold in Asia, with plans for operations in Hong Kong already underway.

Sygnum was launched in 2018. Earlier this year, the bank secured a $40 million funding round led by asset manager Azimut Holding. 

In June, the bank surpassed 20 entities in its list of supported clients for business-to-business (B2B) services after partnering with notable institutions like PostFinance, ZugerKB, LuzernerKB, VZ Depotbank and others.

Sygnum claims to hold $4.5 billion in assets under administration and boasts a clientele of close to 2000 from over 60 countries.