Crypto bank Sygnum releases its first-half financial report: Derivatives trading up 500%, plans to expand in Asia

The press release issued by the cryptocurrency bank Sygnum this morning, stated that the company has seen significant growth in profitability in the first half of 2024, benefiting from strong performance in cryptocurrency prices, spot, and derivative trading volumes.

Sygnum Report: Significant Profit Growth Expected by 2024

Sygnum announced that the company is expected to reach profitability in the first half of 2024, attributed to a significant increase in cryptocurrency derivative trading and total loan volumes.

Specifically, this includes "doubling of cryptocurrency spot trading volume," "500% increase in cryptocurrency derivative trading volume," and "over 360% growth in total loan volume."

Additionally, the company noted a substantial increase in cryptocurrency transfers on its institutional-grade platform among four core client groups:

primarily professional private investors, external asset management firms and multi-family offices, cryptocurrency foundations, and hedge funds.

Furthermore, the company observed significant growth in its "Pledge-as-a-Service SaaS" product, with Sygnum customers pledging Ethereum increasing to 42%:

Given the launch of Ethereum-related ETF products in the United States, this growth is noteworthy as pledging ETH to a SaaS service provider offers unique advantages beyond ETF pledge restrictions for institutional clients.

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Moreover, the number of institutional and professional investor clients served by Sygnum has grown to nearly 2,000, with collaborations with B2B banks providing technical support for over 1,000 daily cryptocurrency transactions to more than a third of Switzerland's population.

Client Lead: Launch of Bitcoin and Ethereum ETFs Marks a Turning Point for the Crypto Industry

Sygnum's Chief Client Officer (CCO) Martin Burgherr emphasized:

The approval and launch of Bitcoin and Ethereum ETFs mark a turning point for the crypto industry this year, significantly increasing the demand for trusted and regulated exposure to digital assets by institutions and retail investors.

He added, "This is also reflected in the significant growth of Sygnum's core business in the first half of the year, and we will continue to accelerate international expansion and develop new services."

Sygnum's International Expansion Plans

Having been active in the European market, Sygnum, holding licenses in Switzerland and Luxembourg, aims to achieve compliance with the EU's "Markets in Crypto-Assets Regulation (MiCA)" by the first quarter of 2025 and expand its operations to the 30 countries in the European Economic Area (EEA).

Additionally, the company has expanded into Asia and the Middle East, introducing regulated digital asset financial platforms in Singapore and Abu Dhabi, with plans for regulatory operations in Hong Kong in the final approval stage.

This month, in addition to collaborating with Fidelity International and Chainlink to promote tokenized securities and other assets on-chain, Sygnum launched Sygnum Connect, an instant settlement network, to enhance transaction speed, cost, and reliability within the global crypto ecosystem.

Fidelity and Sygnum Partner with Chainlink to Bring Tokenized Asset NAV Data On-Chain