Original author: James Hunt
Crypto bank Sygnum posts first-half profit amid plans for MiCA-compliant EU expansion
Original source: The Block
Compiled by: Koala, Mars Finance
Sygnum reported that the company was profitable in the first half of 2024, driven by a 500% increase in crypto derivatives trading and a more than 360% increase in loan volumes.
Sygnum currently has approximately $4.5 billion in client assets and over $125 million in equivalent core equity, following the completion of a $40 million funding round at a $900 million valuation.
Digital asset bank Sygnum reported on Wednesday that it has turned profitable following a strong first-half performance.
According to a statement shared with The Block, Sygnum’s cryptocurrency spot trading volumes tripled, crypto derivatives volumes increased 500%, and lending volumes increased more than 360% in the first half of 2024 compared to the same period last year.
The company said that the volume of cryptocurrency transfers on Sygnum’s institutional-grade platform has increased significantly across its four core customer segments: professional private investors, external asset managers and multi-family offices, cryptocurrency foundations and DLT companies, and funds and hedge funds. Sygnum’s “staking-as-a-service” product has also witnessed significant growth, with the proportion of Ethereum staked by its customers increasing to 42% on the back of the approval of a spot Ethereum ETF in the United States.
“The approval and launch of Bitcoin and Ethereum ETFs was a watershed moment for the crypto industry this year, leading to a significant increase in demand for trusted, regulated digital assets,” said Martin Burgherr, Sygnum’s Chief Client Officer. “This is also reflected in Sygnum’s own growth, with our core business areas achieving substantial year-to-date growth in the first half of the year.”
The crypto bank’s institutional and professional investor client base now stands at nearly 2,000 worldwide, served by a team of more than 250. Sygnum partnered with more than 20 partner banks and financial institutions in June, enabling more than a third of the Swiss population to trade cryptocurrencies through their primary bank and facilitating more than 1,000 transactions per day, the company claims.
Sygnum currently holds approximately $4.5 billion in client assets and over $125 million in equivalent core equity, following the company’s announcement in January that it had closed a $40 million funding round at a $900 million valuation.
Sygnum’s international expansion plans
In Europe, Sygnum holds licenses in Switzerland and Luxembourg and plans to significantly expand its MiCA-compliant regulatory footprint through the 30 countries that make up the EU and EEA in the first quarter of 2025.
Markets in Crypto-Assets (MiCA) is a comprehensive regulatory framework established by the European Union to ensure harmonization of crypto regulation across its member states.
Sygnum also plans to expand in Asia through its fully regulated digital asset financial services platform based in Singapore, which provides asset management, corporate advisory, cryptocurrency custody and brokerage services. This includes plans to launch regulated operations in Hong Kong, which the company said are "at an advanced stage." Sygnum has also obtained a license in Abu Dhabi, where it provides local access to its Swiss-regulated financial services portfolio.
The company added that it is using its recent growth momentum to invest in its infrastructure, including scaling Sygnum Connect, a network designed to make transactions in the global crypto ecosystem faster, cheaper, less risky and more reliable, as well as expanding its traditional securities issuance.
Sygnum is also working with Fidelity International, Matter Labs, and Hamilton Lane on tokenization projects, and is partnering with Chainlink to provide on-chain fund net asset value data in 2024.
