Sygnum Hits $4.5 Billion In Client Assets As Institutional Crypto Investment Grows

Sygnum, a cryptocurrency bank located in Switzerland, has revealed that it made a profit in the first half of 2024. This happened because its main business areas saw massive growth. The firm also announced that it wants to enter the European Union market next year.

The bank revealed that lending activities and trading volumes grew a lot compared to the previous year. Digital currency spot trading volumes went up two times, and derivatives trading grew by 500%.

The Lending Sector Saw Growth, With Loans Increasing By Over 360%

The firm’s lending business experienced an increase in loan amounts, growing by over 360%, with nearly twice as many clients using Lombard loans.

Sygnum’s customer assets have increased to about $4.5 billion, with a client base reaching 2,000 professional and institutional investors. The financial institution has also grown to have over 250 workers around the world.

The Chief Clients Officer of Sygnum, Martin Burgherr stated that the growth is due to the heightened institutional demand after Ethereum and Bitcoin ETFs were approved earlier this year.

Burgherr said that the approval and start of Ethereum and Bitcoin ETFs were a big deal for the crypto world this year. It caused a huge rise in interest in safe and regulated ways to invest in digital assets. He added that this increase in interest is also seen in Sygnum’s growth, with its main business areas showing a big jump in the first half of the year.

Sygnum also revealed that it wants to expand its presence in the European Union and draw in more customers. The firm wants to open a new branch and get more licenses in the first quarter of 2025 to follow the new Markets in Crypto-Assets Regulation (MiCA) rules.

The company stated that since it started and was given a license in Luxembourg in 2022, the firm has been operating in Europe.

The Company Now Works With Over 20 Banks And Financial Groups In Switzerland

For some years now, Sygnum has been focused on getting a license in Singapore. The company has been disclosing this goal since 2019. The regulatory process was very long, so it took several years. However last October, the bank finally got the full license to offer crypto services.

Sygnum has also pointed out how its business partnerships have grown. It now works with more than 20 banks and financial groups that let over a third of people in Switzerland trade crypto. The company handles over 1,000 trades every day through these collaborations, with almost all trades done automatically.

The bank recently secured $40 million in a funding round, which raised the company value to $900 million. This also increased its main capital to more than $125 million. Before that, the company collected $90 million in another funding round.