Sygnum Sees 400% Trading Volume Surge, Reflects Institutional Crypto Adoption

Sygnum, a prominent digital asset banking group, has reported a remarkable 400% increase in its average annual growth in trading volumes since 2020. This significant growth underscores the accelerating institutional adoption of digital assets, a trend that has been gaining momentum over the past few years.

Néstor Palao, the Head of Corporate Clients at Sygnum, highlighted the shift in the industry, noting that a growing number of traditional institutional trading counterparties have shown interest in using Sygnum's solutions to enter the digital asset space. These counterparties include brokerage firms, prime brokers, investment funds, and family offices, all of which see Sygnum as a regulated gateway into the industry.

The evolution of the industry has also led to changes in the behavior of crypto projects. Startups, which previously sought bank accounts primarily to pay employees or contractors, are now approaching Sygnum with more sophisticated needs. These projects have professionalized their operations, establishing finance departments and seeking solutions for managing their capital more effectively.

Palao explained that these projects now focus on managing their treasury of tokens, hedging their exposure, and generating yield on their holdings. This shift reflects a broader trend in the crypto industry, where established teams and projects are attracting more venture capital activity.

The growth in Sygnum's trading volumes and the increasing sophistication of crypto projects indicate a maturing industry. As more traditional institutions enter the space and crypto projects professionalize their operations, the digital asset ecosystem is becoming more robust and integrated with traditional financial systems. This trend is likely to continue, driving further growth and innovation in the industry.