Sygnum Adds Staked Solana as Collateral for Lombard Loans, Doubling Loan Volumes in a Year

Sygnum, a prominent digital asset bank, has introduced staked Solana (SOL) as collateral for its Lombard loans, a move designed to enhance liquidity options for institutional clients. This strategic addition allows clients to unlock liquidity from their staked Solana holdings while continuing to earn staking rewards, effectively creating a "dual-income" scenario. The bank's decision is a direct response to the growing institutional interest in its loan products, which has seen loan volumes double in the past year. This expansion of collateral options is aimed at meeting the evolving needs of institutional clients in the rapidly growing crypto market.

Benedikt Koedel, Head of Credit & Lending at Sygnum, highlighted the significance of this move, stating that it addresses a key client need to optimize yield while maintaining liquidity. By enabling staked Solana as collateral, Sygnum is providing its clients with a more flexible and efficient way to manage their assets. This innovation not only enhances liquidity but also allows clients to capitalize on staking rewards while borrowing against their assets, a feature that sets Sygnum apart in the competitive landscape of digital asset banking.

The introduction of staked Solana as collateral comes at a critical time for Sygnum. The firm has witnessed a remarkable surge in demand for loan products, doubling its loan volumes in just a year. This feature not only enhances Sygnum’s service offering but also aligns with its institutional clients’ desire for more flexibility in asset management. The ability to use staked Solana as collateral reduces loan costs, as a portion of the staking rewards can be used to offset loan fees. This innovative approach allows clients to yield passive income while accessing necessary liquidity, making it a compelling option for institutional investors.

Sygnum’s adoption of staked Solana signifies a comprehensive strategy to bolster liquidity management for its clients. The bank ensures full segregation of client positions on-chain, meaning that assets are not pooled but managed individually. This approach enhances security and compliance, highlighting Sygnum’s dedication to safeguarding client interests while fostering an innovative lending environment. By providing robust liquidity management and security, Sygnum is positioning itself as a leader in the crypto banking sector, ready to meet the growing demand for crypto assets among institutional clients.