Sygnum, a global digital asset banking group, announced the expansion of its credit offerings by adding staked Solana (SOL) as eligible collateral for its Swiss Franc, Euro, Singapore dollar, and US dollar-denominated Lombard loans.
This allows Sygnum clients to unlock liquidity “from their staked Solana holdings while continuing to earn staking rewards, creating dual-income potential from a single crypto asset.”
Additionally, Lombard loans that pledge staked SOL as “collateral are low-cost because the generated staking rewards are used to cover the majority of the fees.”
The addition of staked SOL complements Sygnum’s existing Lombard loan collateral portfolio, which “includes over 20 different tokens includes BTC, ETH, SOL (unstaked), POL and XRP.”
This development comes at a time of growth for Sygnum’s lending business, which has “seen loan volumes double over the past 12 months as institutional demand for crypto-backed financing continues to rise.”
Benedikt Koedel, Head of Credit & Lending at Sygnum Bank, said:
“By enabling staked Solana as collateral, we’re addressing a key client need to optimise yield while maintaining liquidity. This enhancement builds on our proven track record in crypto-backed lending, recently demonstrated by our USD 50 million Bitcoin-backed syndicated loan to Ledn last August.”
Alongside Solana’s collateral functionality, Sygnum’s Solana staking service enables clients “to generate staking rewards on their SOL holdings through the bank’s institutional-grade custody and staking platform.”
Unlike pooled staking solutions that co-mingle client assets, Sygnum’s approach provides “full segregation of client positions on-chain.”
The new staking service is accessible through “multiple channels, including Sygnum’s user interface, API integration or via client relationship managers.”
Thomas Brunner, Head of Custody & Staking at Sygnum Bank, commented:
“Solana has established itself as a leading Layer 1 blockchain with significant adoption. As the second-largest staking token by staked market capitalisation, adding SOL staking capabilities was a natural evolution of our offering. Combined with our Lombard loan functionality, clients can now maximize the utility of their Solana holdings.”
As clarified in the update, staked SOL is “not accepted for all clients; residents of certain countries are not eligible.”
As mentioned in the announcement, staking rewards vary “based on market and network conditions and are lower fees.”
As covered, Sygnum is a global digital asset banking group, “founded on Swiss and Singapore heritage.”
They empower professional and institutional investors, banks, corporates, and DLT foundations to “invest in digital assets with complete trust.”
Their team enables this through “institutional-grade security, personal service, and portfolio of regulated digital asset banking, asset management, tokenization, and B2B services.”
In Switzerland, Sygnum holds a banking license and “has CMS and Major Payment Institution licences in Singapore.”
The group is also regulated in the established “global financial hubs of Abu Dhabi and Luxembourg and is registered in Liechtenstein.”