- At Sygnum Bank, you may employ stalled SOL to get fiat borrowing.
- Lombard loan volume doubles amid institutional demand.
- Clients earn staking rewards while accessing liquidity.
Sygnum Bank, headquartered in Switzerland, has expanded its cryptocurrency offerings by allowing customers to secure multi-currency fiat loans using staked Solana (SOL). This step allows investors to gain access to liquidity without giving up staking rewards, to meet growing institutional appetite for flexible crypto-backed financing.
The bank’s Lombard loan program, which supports more than 20 digital assets, recently added staked SOL, meaning that clients can borrow in currencies such as Swiss francs, euros, USD and Singapore dollars. This growth comes at a time when Sygnum records a doubling of its crypto lending volume within the past 12 months as a result of growing interest from institutions and high net worth investors.
Two Income Opportunities for SOL holders
Sygnum’s newest offering enables clients to cash out on the staked Solana holdings while still being paid in staking rewards. The bank says that the fact that this opens a window for investors to earn income on their loan proceeds and yields from staking creates an attractive proposition.
By helping to cover loan fees through staking rewards, Sygnum guarantees that the borrowing prices are low. This cost-effective form makes the loans attractive to clients who are looking forward to raising cash without having to offload their crypto assets. The bank’s collateral pool already includes such cryptocurrencies as Bitcoin (BTC), Ethereum (ETH), unstaked SOL, Polkadot (DOT), and Ripple (XRP).
The head of credit and lending at Sygnum, Benedikt Koedel, said that taking staked Solana serves a vital demand for investors. He mentioned that the option gives client’s opportunity to optimize returns without losing access to liquid funds, which is consistent with the banks’ objective of combining traditional finance and digital assets.
Sygnum’s inclusion of staked SOL shows the increasing popularity of Solana, a fast and low-cost high-performance blockchain. Read more on Solana’s ecosystem at the Solana official site.
Institutional Demand Fuels Lending Growth
The move to add staked SOL as collateral comes at a time when Sygnum’s lending activity is rising. According to the bank, the doubling of its Lombard loan volume is due to increased institutional interest in crypto backed financing. A 2024 November survey conducted by Sygnum, on over 400 high net worth investors of 27 countries, showed that there is high confidence in the use of cryptocurrencies as a means of portfolio diversification and as a hedge against macroeconomic uncertainty.
This trend fits in with the larger market dynamics because, despite the institutional embracing of digital assets, the space continues to expand. The collaboration with conventional finance outfits like Swiss bank PostFinance is also increasing access to crypto services for Sygnum.
The compliance and safety of its clients are ensured by Sygnum because it is regulated by the Swiss Financial Market Supervisory Authority (FINMA). The bank’s aggressive lending practices and commitment to institutional-grade custody have propelled it to the forefront of the digital asset banking market.
It is in response to a discerning investor client base that values both yield and liquidity that Sygnum is enabling staked SOL as collateral. The ability of the bank to innovate in a regulated environment sends a message of the bank’s function in the maturity of the cryptocurrencies in mainstream finance.
