Sygnum's Client Assets Hit $4.5 Billion amid Institutional Crypto Boom

The Swiss-based digital asset banking group Sygnum announced today (Thursday) that it has achieved profitability in the first half of 2024. This was driven by strong growth across its core business segments. The company also revealed plans for an expansion into the European Union market in early 2025.

Sygnum Reports Profitability and $4.5B in Assets

The crypto-focused bank reported substantial increases in trading volumes and lending activities compared to the same period last year. Crypto spot trading volumes doubled, while derivatives trading surged by 500%. The company's lending business saw loan volumes rise by over 360%, with the number of clients using Lombard loans nearly doubling.

Sygnum's client assets under management have grown to approximately $4.5 billion, supported by a client base approaching 2,000 institutional and professional investors. The company's workforce has expanded to over 250 employees globally.

Martin Burgherr, Sygnum's Chief Clients Officer, attributed the growth partly to increased institutional demand following the approval of Bitcoin and Ethereum ETFs earlier this year.

“The approval and launch of Bitcoin and Ethereum ETFs were a watershed moment for the crypto sector this year, leading to a major increase in demand for trusted, regulated exposure to digital assets,” Burgherr stated. “This is also reflected in Sygnum’s own growth, with our core business areas seeing a significant YTD increase in H1.”

Crypto Bank Plans EU Expansion 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 Q1 2025, positioning itself for compliance with the upcoming Markets in Crypto-Assets Regulation (MiCA).

“Sygnum has been active in Europe from launch and licensed in Luxembourg since 2022, one of the world’s leading fund centres,” the company commented. “In Q1 2025, Sygnum will significantly expand its regulated footprint via a new office and licences in the world’s 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 also highlighted the growth of its B2B partnerships, now serving over 20 banks and financial institutions that collectively provide crypto trading access to more than a third of the Swiss population. The company processes over 1,000 trades daily through these partnerships, with nearly all transactions executed via straight-through processing.

The bank's recent $40 million funding round, which valued the company at $900 million, has bolstered its core equity capital to over $125 million. Earlier, the company raised $90 million in a Series B funding round.

Sygnum plans to leverage this capital to expand its traditional securities offering and scale up its Sygnum Connect network, aimed at enhancing global crypto ecosystem connectivity.