Sygnum Bank Adds Staked SOL as Collateral
Global digital asset bank Sygnum has added staked Solana (SOL) to its Lombard loan collateral portfolio for double earning potential on one asset.The Switzerland- and Singapore-based crypto bank says it has added SOL to...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
Global digital asset bank Sygnum has added staked Solana (SOL) to its Lombard loan collateral portfolio for double earning potential on one asset.
The Switzerland- and Singapore-based crypto bank says it has added SOL to its portfolio of over 20 tokens as eligible collateral for its Swiss Franc, Euro, Singapore dollar, and US dollar-denominated Lombard loans.
According to the press release, this allows its institutional clients to leverage fiat liquidity and earn staking rewards at the same time, thus creating “dual-income potential from a single crypto asset.”
Furthermore, the generated staking rewards cover the majority of the fees. This, the team says, makes Lombard loans that pledge staked SOL as collateral low-cost.
News: Sygnum enables staked SOL as collateral as Lombard Loan Volume Doubles
Sygnum adds staked Solana (SOL) to its growing portfolio of over 20 tokens eligible as collateral for Lombard loans, allowing clients to maintain staking rewards while accessing fiat liquidity
… pic.twitter.com/6xwclpC7GL
“By enabling staked Solana as collateral, we’re addressing a key client need to optimise yield while maintaining liquidity,” said Benedikt Koedel, Head of Credit and Lending at Sygnum Bank.
Sygnum claims that there is no co-mingling of client assets due to the full segregation of client positions on-chain.
Moreover, clients can utilize this new staking option to generate staking rewards on their SOL holdings through the bank’s custody and staking platforms. The staking service is available via Sygnum’s user interface, API integration, or client relationship managers.
Notable Institutional Demand IncreaseThe email sent to Cryptonews notes that the SOL addition comes amid growing institutional interest in Solana. This follows Solana futures exchange-traded fund (ETF) filings and spot ETF speculations.
Koedel added that the move “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.”
At the time of writing, SOL is trading at $170.28, following a 5.6% decrease over the past 24 hours, as the market recorded a downturn in general.
The coin’s price increased by 10% in a week, 29% in a month, and 18% in a year. SOL hit its all-time high of $293.31 in January 2025, dropping 42% since.
Furthermore, Thomas Brunner, Head of Custody and Staking at Sygnum Bank, commented on Solana, saying that it 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.”
Meanwhile, Sygnum’s existing Lombard loan collateral portfolio includes major coins like BTC, ETH, POL, and XRP. The team notes that Sygnum’s lending business has seen loan volumes double over the past 12 months. The increase comes as institutional demand for crypto-backed financing continues to rise, it argues.
Founded in 2017, Sygnum is a regulated digital asset bank with licenses in Switzerland, Singapore, Abu Dhabi, Luxembourg, and Liechtenstein. The company recently achieved unicorn status with more than a $1 billion valuation following a $58 million funding round.
The post Sygnum Bank Adds Staked SOL as Collateral appeared first on Cryptonews.
Why this matters
This altcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on CryptonewsRelated market context
South Korean Lender Jeonbuk Bank to Offer Bitcoin-Backed Loans
Bitcoin Magazine South Korean Lender Jeonbuk Bank to Offer Bitcoin-Backed Loans Jeonbuk Bank has become the first bank in South Ko...
Raydium launches INJ token staking on Solana platform
Raydium's INJ staking on Solana may boost Solana's ecosystem growth, potentially enhancing user engagement and liquidity dynamics....
Standard Chartered brings Ripple’s RLUSD into banking custody after $765 million quarterly surge
Standard Chartered has launched custody for Ripple's RLUSD stablecoin as it prepares to expand its use as collateral for instituti...
Lido reports 40% of staked ETH now running on 0x02 validators
The shift to 0x02 validators could streamline Ethereum's network, enhancing efficiency and potentially increasing staking rewards....
Bitcoin-Backed Bank Lending, Bitget Hack Trail and Ledger Supply-Chain Scare Define a Pivotal Week for Crypto Custody
Jeonbuk Bank offers Bitcoin-collateralised loans, SlowMist traces the $388m Bitget hack to a four-week compromise, and Ledger prob...
Interactive Brokers launches Ethereum staking as crypto push expands
Interactive Brokers' Ethereum staking launch signifies a growing integration of crypto services into traditional investment platfo...