Sygnum, a global digital asset baking group, today 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.[i] 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 already includes over 20 different tokens includes BTC, ETH, SOL (unstaked), POL and XRP. This development comes at a time of significant 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.
“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 & Lending at Sygnum Bank.
“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.[ii] 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.”
[i] Staked SOL is not accepted for all clients; residents of certain countries are not eligible.
[ii] Staking rewards vary based on market and network conditions and are less fees.
