Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn

Crypto bank Sygnum posts profit after doubling crypto trading volumes

CointelegraphCointelegraph2024/07/25 02:43
By:Brayden Lindrea

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 reported 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 ( BTC ) and Ether ( ETH ) 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.”

“This is also reflected in Sygnum’s own growth, with our core business areas seeing a significant YTD increase in H1.”

Sygnum offers several of its own crypto-related exchange-traded products, such as the Sygnum Platform Winners Index ETP which holds Bitcoin, Ether, Solana ( SOL ), Cardano ( ADA ), Polkadot ( DOT ) and other large market cap coins.

Source: Sygnum Bank

More clients are also opting to stake their Ether through Sygnum’s staking-as-a-service offering, 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.

Sygnum Bank eyes further expansion

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 Markets in Crypto-Assets Regulation 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: Sygnum bank to tokenize $50M of Matter Labs’ reserves for transparency

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 expand its regulated offerings into the Asia-Pacific region, including Hong Kong, in the months to come.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

Citi Shares Reasons Why Bitcoin and Cryptocurrencies Aren’t Surging and What to Expect in the Days Ahead

Citi analysts analyzed the underperformance in the Bitcoin and cryptocurrency markets and shared their predictions. Here are the details.

Bitcoinsistemi2024/09/07 09:51

‌Spot copy trading

More
AIOnline
AIOnline
insight1000/1000
11318.51%
ROI
Total profit $57724.41
HappyPlanets
HappyPlanets
insight500/500
18780.56%
ROI
Total profit $37561.09

Bot copy trading

More
TopTrader85
TopTrader85
insight150/150
$13284.03
Total profit
Total subscriber profits $137.16
GridOnly
GridOnly
insight150/150
$9015.2
Total profit
Total subscriber profits $107.17