TL;DR
- Sygnum now permits staked SOL to be used as collateral in Lombard loans, combining fiat liquidity entry with staking rewards in a single operation.
- The transfer responds to rising institutional demand for Solana and its place because the second-largest staked token by market capitalization.
- The initiative lowers web borrowing prices by means of staking yields whereas holding consumer property strictly segregated on-chain for full traceability.
Sygnum Bank has formally added staked Solana (SOL) to its crypto-backed lending providers.
The Swiss and Singapore-based establishment will now let its institutional shoppers use staked SOL as collateral for Lombard loans, denominated in Swiss francs, euros, Singapore {dollars}, and US {dollars}. This construction delivers a twin benefit: shoppers can entry fiat liquidity with out liquidating their asset whereas persevering with to earn staking rewards because the SOL stays locked.
The goal is to assist customers maximize crypto returns with out compromising the pliability of their holdings. By this mechanism, the staking rewards offset a good portion of the mortgage’s curiosity prices, decreasing the general expense of the transaction. On the similar time, the financial institution enforces strict on-chain segregation of consumer property, stopping any co-mingling of positions and preserving the person traceability of funds.
Sygnum Bets on Solana’s Institutional Momentum
This resolution follows rising institutional curiosity in Solana, fueled by futures ETF filings and hypothesis round upcoming spot funding autos based mostly on SOL. The financial institution described this addition as a pure step, provided that SOL ranks as the world’s second-largest staking token by market capitalization and continues to acquire regular adoption as a layer-one blockchain.
How to Entry the New Service?
Sygnum’s staking service is accessible by means of its digital platform, through API integration, or immediately by means of devoted account managers. Presently, its Lombard mortgage collateral portfolio covers greater than 20 crypto property, together with Bitcoin, Ethereum, Polygon, and XRP. In the meantime, the financial institution has seen fast progress in its crypto-backed lending enterprise, doubling its mortgage quantity over the previous 12 months.
Again in August 2024, Sygnum formalized a $50 million syndicated Bitcoin-backed mortgage for Ledn. Since its founding in 2017, the digital asset financial institution has secured licenses in 5 jurisdictions and, following a $58 million funding spherical, surpassed a $1 billion valuation
