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Sygnum recorded substantial growth across its four core client segments.
Digital asset bank Sygnum has revealed that the first half of 2024 was a profitable one for it. This follows after it recorded increased activity on several branches of its business, which saw it put up a very strong performance in the period in view.
According to the company report, posted on Wednesday, Sygnum saw a 500% increase in crypto derivatives trading, a times 2 increase in crypto spot trading, and an over 350% increase in lending volumes in the first six months of this year. That is, as opposed to the figures seen over the same period in 2023.
Furthermore, Sygnum also recorded substantial growth across its four core client segments. This is especially true in terms of crypto transfer volumes. According to the firm, funds and hedge funds, professional private investors, crypto foundations and DLT companies, and external asset managers and multi-family offices all witnessed impressive spikes over these past six months.
So far, 2024 has been an amazing year for Sygnum, and its “Staking-as-a-Service” offering is not left out of the show. The percentage of Ether staked by Sygnum’s clients surged 42% amid the recent approval of spot Ethereum exchange-traded funds (ETFs) in the US, which currently excludes staking yields.
Sygnum Attributes Strong Performance to Spot Bitcoin and Ether ETFs Approvals
Meanwhile, it appears that Sygnum may be linking its success story in the year running to ETFs. According to Chief Client Officer Martin Burgherr, the current regulatory environment gives trusted companies like Sygnum an undeniable edge. Burgherr said in a part statement:
“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.”
Sygnum’s growth has been a steady yet remarkable one. So much so that its worldwide client base is now on the verge of hitting 2,000. The crypto bank boasts a workforce of 250 individuals and more than 20 partner banks. This has helped it to cater to the needs of over one-third of the Swiss population that fancy crypto trading. According to the firm, it currently facilitates over 1,000 trades per day.
As of publication, Sygnum holds approximately $4.5 billion worth of customer assets. That, and over $125 million in equivalent core equity capital. It raised $40 million from a funding round in January that brought its valuation to $900 million at the time.
MiCA-compliant Expansion Plans
Presently, Sygnum is only licensed to operate in Switzerland and Luxembourg. That is, as far as Europe is concerned. However, the firm is already speeding up plans for further expansion. It wants to establish its footprint across the 30 countries that make up the European Union and European Economic Area. Hopefully, that will be achieved by Q1 2025, Sygnum says. However, expansion will be carried out in such a way that fully complies with the Markets in Crypto Assets (MiCA) regulatory framework.
Away from Europe, Sygnum also wants to extend its tentacles internationally. The firm would seek to expand in Asia via its fully-regulated digital asset financial services platform in Singapore. As part of this, the firm confirms that plans for regulated operations in Hong Kong are already at an advanced stage.
Sygnum is also licensed in Abu Dhabi. However, it remains to be seen how and when it will decide to venture into other regions, including Africa and South America.
