Sygnum Doubles Loan Volumes, Adds Staked Solana as Collateral

Sygnum, a Swiss-Singaporean digital asset bank, has announced a significant enhancement to its loan collateral portfolio by adding staked Solana. This move allows institutional clients to access fiat liquidity while continuing to earn staking rewards. The bank, which has been offering crypto staking services for nearly four years, has seen a surge in institutional demand, leading to a doubling of its loan volumes in the past year. This development is part of Sygnum's broader strategy to diversify its services and meet the growing needs of its clients.

Sygnum's new offering involves using staked Solana as collateral for Lombard loans, a type of loan typically available to high-net-worth individuals or institutional investors. This is the first time Sygnum has offered a staked option as collateral, adding to its existing portfolio of over 20 tokens. The bank's in-house custody service ensures full segregation of client positions on-chain, providing a secure and flexible solution for institutional clients. Sygnum will also stake Solana through various channels, including its user interface, API integration, and client relationship managers, to ensure the security and flexibility of the service.

One of the key advantages of using staked Solana as collateral is the low cost of the loans. A significant portion of the staking rewards goes towards paying the usual fees, making it a cost-effective option for clients. In contrast, clients pledging regular Solana tokens have to pay significantly more and do not receive any passive income. This new collateral option is expected to appeal to clients looking to optimize their yield while maintaining liquidity. Benedikt Koedel, Head of Credit & Lending at Sygnum, highlighted the significance of this enhancement, stating that it addresses a key client need and builds on Sygnum's proven track record in crypto-backed lending.

Sygnum's recent experience corroborates its published research from last November, which suggested a growing institutional demand for crypto exposure. The bank's loan volumes have doubled in the last year, driven by this increased demand. The addition of staked Solana to its loan collateral portfolio is a strategic move to meet this demand and provide clients with more options to optimize their yield while maintaining liquidity. This development is part of Sygnum's broader strategy to diversify its services and meet the growing needs of its clients.