Global digital asset bank Sygnum has reported a profitable first half (H1) of 2024, showcasing robust business performance. The firm saw a 500% increase in crypto derivatives trading and a two-fold increase in crypto spot trading volumes compared to the same period in 2023.
Strong Growth and Market Demand
According to a press release on Thursday, Sygnum experienced significant growth in lending activities, with over a 360% increase in loan volumes and more than 1,000 daily trades. Martin Burgherr, Sygnumâs Chief Clients Officer, attributed this surge in demand to the recent approval of Bitcoin and Ethereum ETFs, calling it a âmomentâ for the crypto sector.
âThis is also reflected in Sygnumâs own growth, with our core business areas seeing a significant year-to-date increase in H1,â Burgherr stated.
Additionally, the percentage of ETH staked by Sygnum clients grew to 42%, a 15% increase above the global average, highlighting the shifting dynamics around Ethereum-related ETF products.
Expansion into EU and Asia
Sygnum is preparing to expand its operations into the European market in the first quarter of 2025, aligning with the upcoming Markets in Crypto-Assets Regulation (MiCA). This regulatory framework aims to create a transparent and secure environment for investors within the Eurozone.
âIn Q1 2025, Sygnum will significantly expand its regulated footprint via a new office and licenses in the worldâs biggest single market, the 30 countries comprising the European Union (EU) and European Economic Area (EEA),â the company announced.
Sygnum also plans to establish a presence in emerging Asian markets through its fully-regulated crypto services platform in Singapore. The bank is in advanced stages of planning regulated operations in Hong Kong and is already established in Abu Dhabi, providing local access to a portfolio of Swiss-regulated financial services.
Strategic Partnerships and Future Plans
In June, Sygnum onboarded more than 20 banks, including SocGen and PostFinance, to enable regulated crypto services for a third of the Swiss population through its B2B network. This move signifies Sygnumâs commitment to expanding its reach and providing secure, regulated access to crypto services.
With its strong performance in H1 2024 and strategic plans for expansion, Sygnum is poised to enhance its influence in the global crypto market, offering innovative and regulated financial services to a broader audience.
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