Global digital asset bank Sygnum has reported a profitable first half (H1) of 2024, driven by strong business performance. The company reported a 500% increase in cryptocurrency derivatives trading and a twofold increase in cryptocurrency spot trading volume compared to the same period in 2023.
The cryptocurrency bank reported strong growth in lending activity, according to a Thursday press release. Sygnum showed more than 360% growth in loan volumes and more than 1,000 transactions per day.
Martin Burgherr, Sygnum’s chief customer officer, attributed the demand for cryptocurrencies to the recent approval of Bitcoin and Ethereum ETFs. He called this year a “watershed moment” for the cryptocurrency sector.
“This is also reflected in Sygnum’s own growth, and our core business areas have seen significant year-to-date growth in the first half of the year.” Moreover, the percentage of ETHs placed by customers also rose to 42%, an increase of 15% compared to the global average. “This is particularly noteworthy given the changing dynamics around Ethereum-related ETF products,” Sygnum wrote.
In June, Sygnum also joined more than 20 banks, including SocGen and PostFinance. The move was meant to enable regulated third-party crypto services to Switzerland’s population via a B2B network.
Sygnum is looking at expansion in the EU and Asia
The cryptocurrency bank is considering further expansion into the European market in the first quarter of 2025, in line with the upcoming regulation on cryptocurrency markets (MiCA). The groundbreaking framework aims to make the crypto industry in the Eurozone a transparent and secure environment for investors.
“In the first quarter of 2025, Sygnum will significantly expand its regulated reach through a new office and licenses in the world’s largest single market, namely in 30 countries covering the European Union (EU) and the European Economic Area (EEA).“
In addition, it plans to enter emerging markets in Asia through a fully regulated virtual services platform in Singapore.
The release added that Sygnum is also at an advanced stage of planning for a regulated business in Hong Kong. In addition, the bank is also based in Abu Dhabi and offers local access to a regulated financial services portfolio in Switzerland.
