As a seasoned crypto investor with several years of experience in this dynamic market, I have witnessed firsthand the tremendous growth and transformation of the digital asset industry. Sygnum’s impressive performance in the first half of 2024 has caught my attention, particularly because I have been following their progress closely.
In the first half of 2024, digital asset bank Sygnum reported impressive profits. This success can be attributed to heightened business activity across various sectors, leading to an exceptionally robust performance during this timeframe.
As a crypto investor, I’ve noticed some impressive growth in Sygnum’s trading and lending activities based on their recently released report. In the first half of this year, we witnessed a staggering 500% surge in crypto derivatives trading compared to the same period last year. Crypto spot trading volume doubled, reaching twice the figure from 2023. Moreover, Sygnum’s lending volumes experienced an over 350% increase during this timeframe.
Additionally, Sygnum noted significant expansion in each of its key client categories during the previous half-year period. Particularly noteworthy was the surge in crypto transfer volumes among funds and hedge funds, crypto foundations and DLT companies, professional private investors, external asset managers, and multi-family offices.
As a seasoned financial professional with extensive experience in the digital asset industry, I’ve witnessed Sygnum’s remarkable growth throughout 2024. Their innovative “Staking-as-a-Service” offering has been nothing short of impressive, capturing the attention and interest of numerous clients. The recent approval of spot Ethereum ETFs in the US has sparked a significant surge in Ethereum staking, with Sygnum’s client base experiencing a 42% increase in participation. Despite the current exclusion of staking yields from these ETFs, I firmly believe that Sygnum’s expertise and leadership in this area will continue to set them apart in the competitive digital asset marketplace.
Sygnum Attributes Strong Performance to Spot Bitcoin and Ether ETFs Approvals
It seems that Sygnum’s achievements in the past year may be closely connected to Exchange-Traded Funds (ETFs), as suggested by Chief Client Officer Martin Burgherr. In his remarks, Burgherr highlighted that the favorable regulatory climate offers established companies like Sygnum a distinct advantage.
As a seasoned investor with over two decades of experience in traditional financial markets, I can attest that the approval and launch of Bitcoin and Ethereum Exchange Traded Funds (ETFs) this year has been a game-changer for the crypto sector. This development marked a major milestone, opening up new opportunities for institutional investors to gain trusted, regulated exposure to digital assets in a way that is familiar and comfortable to them.
The expansion of Sygnum has been impressive and consistent, with its global clientele nearing the 2,000 mark. This crypto bank boasts a team of 250 employees and collaborations with over twenty financial institutions. These partnerships enable Sygnum to serve more than one-third of the Swiss population who are interested in cryptocurrency trading. The company reports facilitating approximately 1,000 trades per day.
At the time of print, Sygnum manages around $4.5 billion in assets for its clients. Additionally, the company holds over $125 million as core equity capital. In January, they secured $40 million through a funding round, which increased their valuation to $900 million.
MiCA-compliant Expansion Plans
Currently, Sygnum is authorized to conduct business only in Switzerland and Luxembourg within Europe. Yet, the company is actively working on broadening its presence in the European Union (EU) and European Economic Area (EEA), which comprises 30 countries. The goal is to accomplish this expansion by the first quarter of 2025. Importantly, Sygnum intends to adhere strictly to the regulatory guidelines set forth by the Markets in Crypto Assets (MiCA) framework during its growth process.
Beyond Europe, Sygnum aspires to broaden its reach globally. To accomplish this, the company intends to grow its presence in Asia through its compliant digital asset financial services platform based in Singapore. Moreover, Sygnum discloses that preparations for regulated operations in Hong Kong are well underway.
Sygnum holds a license in Abu Dhabi as well. Yet, the specifics regarding its expansion plans into other areas such as Africa and South America are yet to be determined.
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2024-07-25 11:49