Bank

2024

United

Bitcoin

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 <a href="https://www.prnewswire.com/apac/news-releases/sygnum-posts-profit-and-sets-stage-for-mica-compliant-expanded-eu-market-entry-302205142.html" target="_blank" rel="noopener noreferrer nofollow">reported</a> 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 (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) and Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) 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.”
<blockquote>
 “This is also reflected in Sygnum’s own growth, with our core business areas seeing a significant YTD increase in H1.”
</blockquote>
Sygnum <a href="https://www.sygnum.com/asset-management/" target="_blank" rel="noopener noreferrer nofollow">offers</a> several of its own crypto-related exchange-traded products, such as the Sygnum Platform Winners Index ETP which holds Bitcoin, Ether, Solana (<a href="https://cointelegraph.com/solana-price-index" rel="noopener noreferrer nofollow">SOL</a>), Cardano (<a href="https://cointelegraph.com/ada-price-index" rel="noopener noreferrer nofollow">ADA</a>), Polkadot (<a href="https://cointelegraph.com/polkadot-price-index" rel="noopener noreferrer nofollow">DOT</a>) and other large market cap coins.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-07/9ec9286a-b391-4c13-badc-64ba05c80986.png" alt="Crypto bank Sygnum posts profit after doubling crypto trading volumes">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/sygnumofficial/status/1816114663274262806" target="_blank" rel="noopener noreferrer nofollow">Sygnum Bank</a>
 </figcaption>
</figure>
More clients are also opting to stake their Ether through Sygnum’s <a href="https://cointelegraph.com/learn/ethereum-2-0-staking-a-beginners-guide-on-how-to-stake-eth" rel="noopener noreferrer nofollow">staking-as-a-service offering, </a>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.
<h3 id="sygnum-bank-eyes-further-expansion">Sygnum Bank eyes further expansion</h3>
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 <a href="https://cointelegraph.com/learn/markets-in-crypto-assets-regulation-mica" rel="noopener noreferrer nofollow">Markets in Crypto-Assets Regulation</a> by Q1, 2025.
While Switzerland is based in Europe, it is not part of the European Union and therefore is not bound by MiCA.
However, Sygnum has been licensed in EU member state Luxembourg since the bank launched in 2022.
Related: <a href="https://cointelegraph.com/news/sygnum-bank-tokenize-50-m-matter-labs-reserves-transparency" rel="noopener noreferrer nofollow">Sygnum bank to tokenize $50M of Matter Labs’ reserves for transparency</a>
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 <a href="https://cointelegraph.com/news/sygnum-bank-singapore-major-payment-institution-license" rel="noopener noreferrer nofollow">expand its regulated offerings</a> into the Asia-Pacific region, including Hong Kong, in the months to come.
Magazine: <a href="https://cointelegraph.com/magazine/unstable-coins-de-pegging-bank-runs-other-risks-2023/" rel="noopener noreferrer nofollow">Unstablecoins: Depegging, bank runs and other risks loom</a>

Crypto bank Sygnum posts profit after doubling crypto trading volumes

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Cointelegraph

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