Sygnum Bank, a leading Switzerland-based crypto bank, experienced a profitable first half of 2024, driven by a substantial increase in cryptocurrency trading volumes. The bank, which manages $4.5 billion in client assets, saw a notable rise in crypto spot trading volumes, doubling compared to the same period last year. Additionally, there was an astounding 500% increase in crypto derivatives trading and a 360% rise in loan volumes, according to a statement released on July 25.
What Contributed to the Growth?
Martin Burgherr, Sygnum’s Chief Client Officer, attributed this impressive growth to the recent approval of Bitcoin and Ethereum ETFs in the United States. He emphasized that the launch of these ETFs marked a significant moment for the cryptocurrency sector, leading to heightened demand for digital assets. Sygnum offers a variety of crypto-related exchange-traded products, including the Sygnum Platform Winners Index ETP, featuring major cryptocurrencies like Bitcoin, Ethereum, Solana, Cardano, and Polkadot.
Additionally, the bank noted an increase in the number of customers staking their Ethereum through its staking-as-a-service offering, representing 42% of all Ethereum currently held by Sygnum clients. This service provides benefits beyond the ETF framework, which presently excludes staking yields.
What Are Sygnum’s Goals?
Sygnum aims to align fully with the European Union’s Markets in Crypto-Assets (MiCA) regulation by the first quarter of 2025, as part of its plan to further its expansion into the European market. Despite Switzerland not being an EU member, Sygnum has been licensed in Luxembourg, an EU state, since 2022. The bank has also formed partnerships with over 20 business-to-business banks and financial institutions, enabling a significant portion of Switzerland’s population to trade cryptocurrencies through their primary banks.
Key Insights for Investors
- Approval of Bitcoin and Ethereum ETFs in the U.S. has significantly increased demand for cryptocurrencies.
- Sygnum’s staking-as-a-service offering is beneficial for institutional clients, especially in providing staking yields not covered by ETFs.
- Compliance with MiCA regulation is crucial for Sygnum’s European market expansion.
- Partnerships with numerous financial institutions enhance accessibility to cryptocurrency trading.
In addition to its European footprint, Sygnum operates an office in Singapore and plans to extend its regulated offerings to the Asia-Pacific region, including Hong Kong, in the near future. The bank’s corporate and professional investor client base is nearing 2,000, reflecting its growing influence in the crypto banking sector.
The strategic moves and regulatory compliance initiatives position Sygnum Bank well for continued growth and expansion in the global cryptocurrency market.
