Swiss crypto bank Sygnum has reported profits in the first half of 2024, driven by a significant increase in crypto trading volume.

The bank’s first-half spot crypto trading volume doubled compared to 2023. Additionally, there was a 500% growth in crypto derivatives volumes and a 360% rise in lending volumes.

While exact profit figures were not disclosed, Sygnum noted strong growth in crypto transfer volumes from professional private investors, external asset managers, multi-family offices, crypto foundations, DLT companies, and funds and hedge funds, which form the core clientele.

Key drivers behind this growth include Spot Bitcoin Exchange Traded Funds and the anticipation of Ether ETFs. Sygnum Chief Client Officer Martin Burgherr mentioned that these new investment vehicles have increased demand for trusted, regulated exposure to digital assets.

Sygnum also saw growth in its staking-as-a-service offering, with a 42% increase in staked ETH.

Staking has not been included in Ether ETF offerings due to SEC regulations, which classify it as an investment contract. Consequently, Sygnum claims its staking offering provides a unique benefit beyond the limitations of the ETF framework.

The bank also announced plans for expansion within the European Union. Sygnum has been operating in Luxembourg since 2022 and aims to acquire licenses for the 30 countries comprising the EU and the European Economic Area by 2025.

The bank attributed its strong business performance and regulated banking platform as factors preparing it for MiCA-compliant entry.

Beyond the EU, Sygnum plans to expand its presence in Asia, with operations in Hong Kong already in progress.

Launched in 2018, Sygnum secured $40 million in funding earlier this year, led by asset manager Azimut Holding. In June, the bank surpassed 20 entities in its list of supported clients for business-to-business (B2B) services after partnering with institutions like PostFinance, ZugerKB, LuzernerKB, and VZ Depotbank.

Sygnum claims to hold $4.5 billion in assets under administration and boasts a clientele of close to 2000 from over 60 countries.

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