Sygnum Bank is now permitting purchasers to make use of staked SOL as collateral for multi-currency loans, as institutional demand drives a doubling in its crypto lending quantity.
Swiss digital crypto-friendly bank Sygnum has added staked Solana (SOL) to its portfolio of tokens eligible as collateral for Lombard loans, permitting purchasers to entry fiat liquidity whereas persevering with to earn staking rewards.
In a Thursday blog announcement, the Swiss bank stated the brand new characteristic applies to loans in Swiss francs, euros, Singapore {dollars}, and U.S. {dollars}. The brand new replace permits Sygnum purchasers to unlock liquidity from their staked Solana holdings whereas persevering with to earn staking rewards, creating “dual-income potential from a single crypto asset,” the bank stated.
Sygnum additionally famous that Lombard loans that pledge staked SOL as collateral are “low-cost as a result of the generated staking rewards are used to cowl nearly all of the charges.”
The transfer comes as Sygnum’s lending enterprise has seen important progress as its mortgage quantity doubled over the previous 12 months, the press launch reads. The most recent addition expands Sygnum’s Lombard mortgage collateral pool, which already consists of Bitcoin (BTC), Ethereum (ETH), unstaked SOL, Polkadot (POL), Ripple’s XRP (XRP) and different altcoins.
Benedikt Koedel, head of credit score & lending at Sygnum Bank, stated the addition of staked Solana as collateral goals to satisfy a “key shopper have to optimise yield whereas sustaining liquidity.”
In November 2024, a Sygnum survey of over 400 high-net-worth buyers found rising confidence in crypto’s long-term potential, pushed by demand for portfolio diversification and macroeconomic hedging. The report linked this optimism to anticipated greater returns and a broader “megatrend” fueled by sturdy curiosity within the sector.
