Singapore- and Zurich-based Sygnum Bank generated 4.5 billion francs of client assets in the first half of 2024, achieved triple-digit growth in key business areas, and reached break-even for the first time.
Specializing primarily in crypto services for institutional clients, Sygnum announced that it reached profitability in the first half of 2024. The bank, founded in 2018, had already reported positive cash flow for the fourth quarter of 2023.
These successes, however, are not further quantified in the press release.
Watershed Moment
Key factors driving positive business development include a doubling of spot trading in cryptocurrencies compared to the same period last year, a 500 percent increase in derivatives trading, and a 360 percent rise in loans.
Martin Burgherr, Chief Clients Officer at Sygnum, views the recent launch of regulator-approved Bitcoin and Ethereum ETFs as a significant driver of this growth in key business areas. This year marks «a watershed moment for the crypto sector, leading to a major increase in demand for trusted, regulated exposure to digital assets,» he said.
Riding the Wave
The bank intends to carry the momentum of the current crypto summer into the European market. In addition to the existing office in Luxembourg, Sygnum plans to «significantly expand its regulated footprint with a new branch and additional licenses in the world's largest single market» in the first quarter of 2025.
Last January, Sygnum secured 40 million francs ($45 million) in fresh capital during a funding round. Just a few weeks ago, the company announced a new settlement system for transactions in fiat currencies and stablecoins.
Assets More Than Doubled
Sygnum's managed client assets have now reached $4.5 billion. Compared to the end of 2021, this represents more than a doubling.
Besides Singapore and Zurich, the firm operates additional offices in Luxembourg, and Abu Dhabi alongside and employs more than 250 staff worldwide.
