Jul 25, 2024 12:25
TheSwiss-based digital asset banking group Sygnum announced today (Thursday) that ithas achieved profitability in the first half of 2024. This was driven by strong growthacross its core business segments. The company also revealed plans for an expansioninto the European Union market in early 2025.
Sygnum ReportsProfitability and $4.5B in Assets
Thecrypto-focused bank reported substantial increases in trading volumes andlending activities compared to the same period last year. Crypto spot tradingvolumes doubled, while derivatives trading surged by 500%. The company'slending business saw loan volumes rise by over 360%, with the number of clientsusing Lombard loans nearly doubling.
Sygnum'sclient assets under management have grown to approximately $4.5 billion,supported by a client base approaching 2,000 institutional and professionalinvestors. The company's workforce has expanded to over 250 employees globally.
MartinBurgherr, Sygnum's Chief Clients Officer, attributed the growth partly toincreased institutional demand following the approval of Bitcoin and EthereumETFs earlier this year.
Theapproval and launch of Bitcoin and Ethereum ETFs were a watershed moment forthe crypto sector this year, leading to a major increase in demand for trusted,regulated exposure to digital assets, Burgherr stated. This is alsoreflected in Sygnums own growth, with our core business areas seeing a significant YTD increase in H1.
Crypto Bank Plans EUExpansion amid Market Rebound
In addition,Sygnum announced plans to expand its regulated footprint in the European Union.The company aims to open a new office and obtain additional licenses in Q12025, positioning itself for compliance with the upcoming Markets inCrypto-Assets Regulation (MiCA).
Sygnum hasbeen active in Europe from launch and licensed in Luxembourg since 2022, one of the worlds leading fund centres, thecompany commented. In Q1 2025, Sygnum will significantly expand its regulatedfootprint via a new office and licencesin the worlds biggest single market.
In recent years, Sygnum has also placed a strong emphasis on obtaining a license in Singapore. It has been announcing these plans since 2019. Due to the lengthy regulatory process, it took several years, but last October the digital bank finally obtained a full license for crypto brokerage services.
Sygnum alsohighlighted the growth of its B2B partnerships, now serving over 20 banks andfinancial institutions that collectively provide crypto trading access to morethan a third of the Swiss population. The company processes over 1,000 tradesdaily through these partnerships, with nearly all transactions executed viastraight-through processing.
The bank'srecent $40 million funding round, which valued the company at $900 million, hasbolstered its core equity capital to over $125 million. Earlier, the company raised $90 million in a Series B funding round.
Sygnum plans toleverage this capital to expand its traditional securities offering and scaleup its Sygnum Connect network, aimed at enhancing global crypto ecosystemconnectivity.
This article was written by Damian Chmiel at www.financemagnates.com.
World Crypto Global
