Sygnum vs. Amina: Who’s Winning the Crypto Banking Race?

Sygnum vs. Amina: Who’s Winning the Crypto Banking Race?

Two firms, one bold experiment: Since 2019, Sygnum and Amina have ventured into the uncharted territory of licensed crypto banking. Six years and a combined loss of over 200 million francs later, both are still operating in the red, but following distinctly different models and strategies. finews.asia takes a close look at the 2024 annual reports.

In August 2019, Switzerland’s financial regulator granted banking licenses to Sygnum and Amina Bank, then still operating under the name Seba, making them the world's first two crypto banks.

Both startups had heavyweight backing from the outset: Sygnum counted former Swiss National Bank Chairman Philipp Hildebrand and ex-UBS CEO Peter Wuffli among its early investors and advisors.

Seba (now Amina) was led by Guido Bühler, previously UBS's Chief Operational Risk Officer, as CEO from 2018 to 2022. Its chairman at the time was Andreas Amschwand, a veteran of both UBS and Julius Baer.

Up to this day, Julius Baer Group remains a key shareholder with a nearly 30 percent stake. Former SNB General Counsel Hans Kuhn has also served on Amina's board since 2019.

Five years on, the question is: Where do these two ambitious and well-connected crypto banks stand today?

finews.asia gained exclusive access to the institutions' 2024 financial reports. Both now operate as fully fledged banks in many respects. Amina reported 3.5 billion Swiss francs ($4.2 billion) in client assets under management and custody, while Sygnum disclosed 4.5 billion francs.

I. Bottom Line

The key takeaway from 2024 is that neither bank has reached profitability. Amina expects to achieve this by 2026, according to information provided to finews.asia. Sygnum, which is closer to breakeven, stated it posted a positive EBITDA of 8.1 million francs before depreciation (mainly on software investments) and provisions.

II. Corporate Structure

Sygnum employs more than twice as many staff as Amina. Both banks maintain a relatively large executive team given their size.

Ownership at Sygnum remains largely in the hands of its founders, while Amina is more institutionally backed, most notably by Julius Baer. Another key investor is Guy Schwarzenbach, whose Black River Asset Management is also represented on Amina’s board.

III. Income Statement, in CHF thousands

Both banks significantly boosted revenues in 2024: Amina by 74 percent, Sygnum by 37 percent.

Yet their revenue mix differs sharply. Nearly half of Sygnum’s top line comes from commission and service income, driven largely by its B2B banking platform.

This platform provides over 20 partner banks and their clients – including Swiss state bank Postfinance – with access to regulated digital asset services. Amina offers a similar setup but has signed on just a handful of regional institutions.

Amina generates most of its trading income through proprietary trading of digital assets such as Bitcoin and Ethereum, according to internal sources.

Both banks also offer Lombard loans backed by crypto assets, providing fiat currency against digital collateral. Sygnum’s loan book reached 235 million francs at year-end (up from 84 million), while Amina grew to 103 million (up from 62 million).

IV. Operating Costs, in CHF thousands

Amina says it has made significant progress in reducing its core cost base since the 2022 management, strategy, and name change.

Mike Foy, Amina Bank's CFO, told finews.asia that the cost increases in 2024 are connected to special effects with respect to the bank's investments in Austria and Hong Kong. «In 2024, the core cost base shrank by 10 percent to about 30m francs. We aim to realize similar savings also this year.»

V. Selected Balance Sheet Figures, in CHF thousands

Both banks remain well capitalized, with a CET1 ratio of 17.48 percent for Sygnum and 34.04 percent for Amina.

The software book value underscores how much more technology-intensive Sygnum’s business model is compared to Amina’s.

Five years in, the two crypto banks have clearly taken different paths. Sygnum is EBITDA-positive and nearing breakeven on a net-income level. Its B2B-focused model provides relatively stable, recurring income.

Amina, by contrast, is still navigating a prolonged transformation process that only gained traction in 2022 under new leadership and strategy.

Hard to Imagine

It’s hard to imagine Amina catching up to Sygnum in the Swiss B2B space any time soon. Sygnum’s heavy investment in proprietary technology platforms has given it a decisive edge, with over 20 client institutions versus Amina’s handful.

Still, relying too heavily on potentially volatile trading income could expose Amina to significant risks. Management appears aware of this, focusing instead on private banking clients, crypto-backed Lombard loans, and international expansion via Hong Kong and Austria – the latter providing MiCA passporting access to the EEA, for which the bank has applied. Sygnum is pursuing a similar MiCA strategy via Liechtenstein.

New chapters in the story of these pioneering Swiss crypto banks are yet to be written. But the road ahead looks rockier for Amina than for Sygnum.