Sygnum Bank, a Swiss crypto bank, reported achieving profitability in the first half of 2024, driven by significant increases in trading volumes following the approval of Bitcoin and Ethereum ETFs in the U.S. During this period, the bank’s crypto spot trading volumes doubled, while its crypto derivatives trading surged by an impressive 500%. This growth was attributed to the heightened demand for regulated digital asset exposure facilitated by these ETFs.
Additionally, Sygnum’s lending business experienced substantial growth, with the number of Lombard loan clients nearly doubling and loan volumes increasing by over 360%. This expansion was supported by the bank’s enhanced trading features, strategic partnerships, and a skilled team of over 250 professionals.
Martin Burgherr, Sygnum’s Chief Client Officer, emphasized the transformative impact of the Bitcoin and Ethereum ETFs on the crypto sector. These ETFs significantly increased demand for secure, regulated access to digital assets, bolstering Sygnum’s trading volumes and client engagement.
Sygnum also offers a variety of crypto-related exchange-traded products, such as the Sygnum Platform Winners Index ETP, which includes a diversified portfolio of cryptocurrencies like Bitcoin, Ether, Solana, Cardano, and Polkadot. Moreover, the bank has seen an increase in clients staking their Ether through its staking-as-a-service, which now represents 42% of all Ether held by its customers. This staking service offers additional benefits, including potential staking yields, not covered by the ETFs.
With a valuation of $900 million following a $41 million capital raise in January, Sygnum plans to expand its operations into the European market, aiming for compliance with the EU’s Markets in Crypto-Assets Regulation (MiCA) by Q1 2025. Although based in Switzerland, which is not an EU member, Sygnum is licensed in Luxembourg and plans further expansion into the Asia-Pacific region, including Hong Kong, reinforcing its global presence in the regulated digital asset market.
Source: cryptotimes.io
