Queensland-based crypto exchange Swyftx says it has seen more small and medium-sized businesses (SMEs) using its platform to buy cryptocurrencies, even since the crash in May.

The company says its customer base had grown from around 15,000 users a year ago to around 320,000 today.

About five or six per cent are high-net-worth accounts, defined as holding more than roughly A$250,000 in assets, Swyftx head of strategic partnerships Tommy Honan said.

Some of those are individuals and people representing trusts and self-managed superannuation funds but others are a variety of businesses.

“We’ve got accounting firms. We’ve got building and construction companies. We’ve got property development companies. We’re seeing a pretty large uptick in these types of accounts,” Honan told Stockhead.

“People that are following crypto will see a lot of news about companies Tesla and Microstrategy holding significant portions of their balance sheets in crypto.

“I think potentially what we’re seeing here is some kind of an emulation of that investment from small, medium businesses in Australia. I feel like this is a trend that we can keep an eye on.”

The accounting firms Swyftx has as customers are investing their own money, not client funds, Honan clarified.

“The accounting firms themselves are still pretty reluctant to devote any type of direction or advice in the crypto direction as of now,” he said.

“If you had said to me 12 months ago, are accounting firms looking at crypto even for themselves as an investment, I would have said no way. I can definitely see that narrative begin to change over the last 12 months.”
 

Buying the dip

Swyftx gives its high-value accounts individual attention, reaching out a couple of times a month. Honan said his team of account managers has grown from two people six months ago to 10 staffers today as the number of such accounts has increased.

While retail investors were buying at the height of the market, since the May crash “more savvy investors, the higher value and higher volume investors” have been stepping in to buy, Honan said.

“These high-value accounts are watching the market closely, and they’re looking for value,” he said.

Swyftx has processed some of its largest value transactions ever since May, he said.

“That’s definitely a clear metric that we’re seeing from Swyftx,” Honan said.

Swyftx has over 260 cryptocurrencies on offer but the high-value accounts are sticking to the best-known coins, Honan said.

“They’re not buying coins outside of the top 100, top 200, 250. The high net worths are not doing that, definitely not.”

Swyftx has partnerships with international exchanges so it is able to offer far more liquidity than Australians would normally be able to source locally, Honan said.

The company is also looking to add more traditional investments like shares to its offering, he said.

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