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

Swiss cryptocurrency bank Sygnum has recorded a profit in the first half of 2024 following a surge in cryptocurrency trading volume.

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

At the time of publication, the exact profit figures for the period were not disclosed.

The bank also noted strong growth in crypto transfer volumes from professional private investors, external asset managers and multifamily offices, crypto foundations, DLT companies and funds, and hedge funds, which make up the institution’s core client base.

The prospect of spot Bitcoin Exchange Traded Funds and Ether ETFs were cited as key drivers behind the growth. According to Sygnum Chief Customer Officer Martin Burgherr, these new investment vehicles have fueled demand for “reliable, regulated exposure to digital assets.”

Sygnum also saw growth in its staking-as-a-service offering, with the announcement noting a 42% increase in staked ETH.

Staking is excluded from Ether ETF offerings due to the SEC viewing it as an investment contract, so the bank claims that its staking offering is a “unique benefit beyond the limitations of the ETF framework.”

The announcement also outlined plans to expand within the European Union. The bank has been operating in Luxembourg since 2022 and plans to obtain licenses for the EU and the 30 countries that make up the European Economic Area by 2025.

The bank cited its “strong business performance” and “regulated banking platform” as factors that paved the way for its MiCA-compliant entry.

The bank aims to increase its presence in Asia outside the EU and plans are already underway to launch operations in Hong Kong.

Sygnum launched in 2018. The bank secured a $40 million financing round led by asset manager Azimut Holding earlier this year.

In June, the bank surpassed 20 organisations in the list of supported clients for business-to-business (B2B) services after partnering with major organisations such as PostFinance, ZugerKB, LuzernerKB, VZ Depotbank and others.

Sygnum reportedly has $4.5 billion in assets under management and around 2,000 customers from more than 60 countries.