Crypto bank Sygnum posts profit after doubling crypto trading volumes.
Swiss crypto bank Signum Bank, which has $4.5 billion in customer assets, has announced that it has reached profitability in the first half of 2024 after experiencing a sharp increase in crypto trading volume.
In a statement on July 25, Sygnum reported a doubling of crypto spot trading volume and a 500% year-over-year increase in crypto derivatives trading in H1 2024. Loans increased 360 percent.
Martin Burger, Signum's chief customer officer, attributed the discovery to the recently approved spot Bitcoin (BTC) and Ether (ETH) exchange in the United States.
“The adoption and launch of Bitcoin and Ethereum ETFs was a watershed moment for the crypto sector this year, fueling demand for trusted and regulated exposure to digital assets.”
“This is also reflected in Sygnum's own growth, with our core business areas seeing significant YTD growth in H1.”
Sygnum offers several of its own crypto-related exchange trading products, such as the Sygnum Platform Winners Index ETP, which contains Bitcoin, Ether, Solana (SOL), Cardano (ADA), Polkadot (DOT) and other large market capitalization coins.
More customers are choosing to stake 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 offers a unique advantage beyond the limitations of the ETF framework, which currently does not include equity yields,” Sygnum said.
Signum Bank eyes further expansion
After raising $40 million in capital in January, the bank, valued at $900 million, is now looking to expand further into the European market and expects to become fully compliant with the EU's new Crypto-Assets Regulation in Q1, 2025. .
While Switzerland is in Europe, it is not part of the European Union and is therefore not subject to MiCA.
However, Sygnum has received a license in EU member state Luxembourg after the bank starts operations in 2022.
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Signum currently partners with more than 20 trade-to-business banks and financial institutions, allowing more than a third of the Swiss population to trade crypto through their main banks.
The bank's institutional and professional investor client base is now approaching 2,000.
Signum has an office in Singapore and plans to expand its regulated offerings to the Asia-Pacific region, including Hong Kong, in the coming months.
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