Sygnum, a leading digital asset bank, announced its profitability milestone on Wednesday, driven by a stellar first-half performance in 2024. The firm experienced significant growth across various sectors, highlighting the increasing demand for regulated crypto exposure.
During the first half of 2024, Sygnum reported a two-fold increase in crypto spot trading, a remarkable 500% rise in crypto derivatives trading, and a substantial 360% surge in lending volumes compared to the same period last year, according to a statement shared with The Block. The bank’s institutional-grade platform saw a significant uptick in crypto transfer volumes across all four core client segments: professional private investors, external asset managers and multi-family offices, crypto foundations and DLT companies, and funds and hedge funds.
Sygnum Unprecedented Growth in Staking and Institutional Client Base
Sygnum’s “Staking-as-a-Service” offering also saw notable growth, with the percentage of ether staked by its clients reaching 42%. This increase coincided with the approval of spot Ethereum ETFs in the U.S., which currently exclude staking yields. “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,” said Martin Burgherr, Sygnum’s Chief Client Officer. “This is also reflected in Sygnum’s own growth, with our core business areas seeing a significant YTD increase in H1.”
Sygnum’s institutional and professional investor client base is now approaching 2,000 globally, serviced by a team of over 250 people. The bank reached over 20 partner banks and financial institutions in June, enabling more than a third of the Swiss population to trade crypto through their primary banks and facilitating over 1,000 trades per day.
Currently, Sygnum holds around $4.5 billion in client assets and over $125 million in core equity capital, following a $40 million funding round at a $900 million valuation announced in January.
Sygnum’s International Expansion Plans
In Europe, Sygnum holds licenses in Switzerland and Luxembourg and aims to expand its MiCA-compliant regulated footprint across the 30 countries in the European Union and European Economic Area by the first quarter of 2025. The Markets in Crypto Assets (MiCA) regulation, established by the European Union, aims to create uniformity in crypto regulation among its members, facilitating smoother operations for firms like Sygnum.
Sygnum also plans to expand in Asia via its fully-regulated digital asset financial services platform in Singapore, offering asset management, corporate advisory, crypto custody, and brokerage services. The company has plans for regulated operations in Hong Kong, which are currently “at an advanced stage.” Additionally, Sygnum is licensed in Abu Dhabi, providing local access to a portfolio of Swiss-regulated financial services.
The firm is leveraging its recent growth to invest in infrastructure, including scaling up Sygnum Connect, a network designed to make global crypto transactions faster, cheaper, less risky, and more reliable. Sygnum is also expanding its traditional securities offering to better serve its growing client base.
Sygnum has forged strategic partnerships with industry leaders such as Fidelity International, Matter Labs, and Hamilton Lane on tokenization projects. Additionally, the bank has collaborated with Chainlink to provide fund NAV data on-chain in 2024, enhancing transparency and reliability in the digital asset space.
Future Prospects
The approval and launch of Bitcoin and Ethereum ETFs have undeniably marked a significant milestone for the crypto sector, fueling an increased demand for regulated digital asset services. Sygnum’s strong performance in the first half of 2024 and its ambitious expansion plans highlight its commitment to leading the digital asset banking industry.
As the crypto market continues to mature, Sygnum is well-positioned to capitalize on emerging opportunities. With its robust infrastructure, regulatory compliance, and innovative service offerings, Sygnum is poised to further strengthen its position as a trusted provider of digital asset financial services globally.
In summary, Sygnum’s strategic growth and international expansion reflect its dedication to delivering secure and regulated access to digital assets, meeting the evolving needs of its diverse client base.
