Sygnum Bank Achieves Profitability Amid Surging Crypto Trading Volumes

Sygnum Bank reaches profitability with a spike in crypto trading volumes and plans further European expansion, aiming for full MiCA compliance by Q1 2025.

Sygnum Bank, a Swiss-based crypto bank managing $4.5 billion in client assets, has announced profitability following a substantial increase in crypto trading volumes during the first half of 2024. The bank is now eyeing further expansion into the European market, targeting full compliance with the European Union's Markets in Crypto-Assets Regulation (MiCA) by early 2025.

Sygnum Bank reaches profitability with increased crypto trading volumes and plans for European expansion.

Key Points:

1. Profitability and Growth:

   • Sygnum Bank achieves profitability due to a significant rise in crypto trading volumes.

   • Crypto spot trading volumes doubled, and crypto derivatives trading surged 500% in H1 2024.

   • Loan volumes increased by 360%.

   
   

2. Driving Factors:

   • The approval of Bitcoin and Ethereum ETFs in the U.S. significantly boosted demand for regulated digital asset exposure.

   • Sygnum's crypto-related exchange-traded products, such as the Sygnum Platform Winners Index ETP, contributed to growth.

   
   

3. Staking Services:

   • A notable rise in clients staking Ether, with 42% of all Ether held by Sygnum customers staked through the bank's service.

   • Staking offers institutional clients benefits beyond ETF limitations.

   
   

4. European Expansion Plans:

   • Sygnum aims to become fully MiCA compliant by Q1 2025.

   • The bank is licensed in Luxembourg and is preparing for broader EU market integration.

   • Plans to expand regulated offerings in the Asia-Pacific region, including Hong Kong.

   
   

5. Institutional Growth:

   • Partnered with over 20 B2B banks and financial institutions, enabling a significant portion of the Swiss population to trade crypto.

   • The client base of institutional and professional investors is nearing 2,000.

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Sygnum Bank's strategic focus on expanding its crypto trading and staking services has led to significant profitability and growth. With plans to further penetrate the European market and achieve MiCA compliance by 2025, Sygnum is well-positioned to capitalize on the increasing demand for regulated crypto asset services.

Source: Cointelegraph