Sygnum Expands Crypto Lending With Staked Solana, Doubles Volume In 12 Months

Sygnum Bank, a leading digital asset bank based in Switzerland, has broadened its cryptocurrency offerings by allowing clients to secure multi-currency fiat loans using staked Solana (SOL). This initiative enables investors to access liquidity without forfeiting their staking rewards, catering to the growing institutional demand for flexible crypto-backed financing.

The bank’s Lombard loan program, which supports over 20 digital assets, has recently incorporated staked SOL. This addition allows clients to borrow in various currencies, including Swiss francs, euros, USD, and Singapore dollars. This expansion coincides with a significant increase in Sygnum’s crypto lending volume, which has doubled over the past 12 months due to heightened interest from institutions and high net worth investors.

Sygnum’s latest offering allows clients to leverage their staked Solana holdings for liquidity while continuing to earn staking rewards. This dual-income opportunity is particularly attractive as it enables investors to generate income from both their loan proceeds and staking yields. By offsetting loan fees with staking rewards, Sygnum ensures that borrowing costs remain low, making the loans an appealing option for clients seeking to raise cash without selling their crypto assets. The bank’s collateral pool already includes other major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), unstaked SOL, Polkadot (DOT), and Ripple (XRP).

Benedikt Koedel, the head of credit and lending at Sygnum, highlighted that the inclusion of staked Solana addresses a critical need for investors. He noted that this option allows clients to optimize returns without sacrificing access to liquid funds, aligning with the bank’s goal of integrating traditional finance with digital assets.

The move to accept staked SOL as collateral reflects the rising popularity of Solana, a high-performance blockchain known for its speed and low costs. This development is part of a broader trend where institutional interest in crypto-backed financing is driving growth in the digital asset market. A survey conducted by Sygnum in November 2024, involving over 400 high net worth investors from 27 countries, revealed a high level of confidence in using cryptocurrencies for portfolio diversification and as a hedge against macroeconomic uncertainty.

Sygnum’s commitment to compliance and client safety is ensured by its regulation under the Swiss Financial Market Supervisory Authority (FINMA). The bank’s innovative lending practices and focus on institutional-grade custody have positioned it as a leader in the digital asset banking sector. By enabling staked SOL as collateral, Sygnum caters to a discerning investor base that values both yield and liquidity, demonstrating the bank’s role in the maturation of cryptocurrencies within mainstream finance.