According to the announcement published today, Sygnum, a Swiss-Singaporean digital asset bank, has integrated staked Solana into its portfolio of tokens that can be used as collateral for loans. This move allows institutional clients to simultaneously receive fiat liquidity and staking rewards, thereby optimizing their financial strategies.
Currently, the bank already accepts Solana and at least 20 other tokens as collateral for loans, however, staked Solana is the first option with staking functionality in this category. Given the rapid growth of institutional demand, Sygnum's lending volumes have doubled over the past year, prompting the company to diversify its offerings.
Staking Solana at Sygnum
Sygnum, a leading financial institution in the digital asset space, began offering crypto staking services nearly four years ago. Since then, the bank has significantly expanded its range of activities, obtaining a crypto brokerage license in 2023 and achieving unicorn status earlier this year due to a successful funding round.
Today, Sygnum launched a new service that allows staked Solana to be used as collateral for Lombard loans.
To avoid confusion, it should be clarified that Lombard loans are a specialized type of lending that is not associated with Lombard Protocol, a company specializing in crypto staking. Such loans are usually granted to high-income individuals or institutional investors, and Sygnum offers this opportunity specifically for the latter category. Sygnum already accepts over 20 different tokens as collateral for such loans, but staked Solana is the first option with staking functionality. This offering provides a number of key advantages for clients using staked Solana as collateral.
Firstly, such loans are characterized by lower costs, as a significant portion of staking rewards is directed towards covering standard fees. In contrast, clients using regular Solana tokens are forced to pay higher fees and do not earn passive income. Sygnum hopes that this innovative collateral option will attract clients looking to optimize their investment strategies.
"By allowing staked Solana to be used as collateral, we are responding to a key client need to optimize returns while maintaining liquidity. This initiative builds on our years of experience in cryptocurrency-backed lending, recently confirmed by a successful $50 million syndicated loan secured by Bitcoin provided to Ledn in August of last year," said Benedict Kyoedel, Head of Lending and Loans at Sygnum.
In November of last year, a study published by Sygnum revealed an increase in institutional demand for cryptocurrencies. Recent data confirms this trend, as the bank reports a doubling of lending volumes over the past year due to this demand.
Staked Solana will contribute to expanding Sygnum's collateral portfolio, enabling more effective responses to growing client needs.
The bank's own custody service will offer complete segregation of clients' on-chain positions, instead of a combined solution that mixes assets together.
Sygnum will also stake Solana independently through channels such as user interface, API integration, or client managers. These tools provide security and flexibility for all institutional clients.#BinanceSquare #Write2Earn #crypto #trading #Binance $ETH