Crypto Bank Sygnum Expands Loan Collateral to Include Staked Solana
By: crypto economy|2025/05/15 17:45:05
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TL;DRSygnum now allows staked SOL to be used as collateral in Lombard loans, combining fiat liquidity access with staking rewards in a single operation.The move responds to growing institutional demand for Solana and its position as the second-largest staked token by market capitalization.The initiative lowers net borrowing costs through staking yields while keeping client assets strictly segregated on-chain for full traceability.Sygnum Bank has officially added staked Solana (SOL) to its crypto-backed lending services.The Swiss and Singapore-based institution will now let its institutional clients use staked SOL as collateral for Lombard loans, denominated in Swiss francs, euros, Singapore dollars, and US dollars. This structure delivers a dual advantage: clients can access fiat liquidity without liquidating their asset while continuing to earn staking rewards as the SOL remains locked.The goal is to help users maximize crypto returns without compromising the flexibility of their holdings. Through this mechanism, the staking rewards offset a significant portion of the loan’s interest costs, lowering the overall expense of the transaction. At the same time, the bank enforces strict on-chain segregation of client assets, preventing any co-mingling of positions and preserving the individual traceability of funds.Sygnum Bets on Solana’s Institutional MomentumThis decision follows growing institutional interest in Solana, fueled by futures ETF filings and speculation around upcoming spot investment vehicles based on SOL. The bank described this addition as a natural step, given that SOL ranks as the world’s second-largest staking token by market capitalization and continues to gain steady adoption as a layer-one blockchain.How to Access the New Service?Sygnum’s staking service is accessible through its digital platform, via API integration, or directly through dedicated account managers. Currently, its Lombard loan collateral portfolio covers more than 20 crypto assets, including Bitcoin, Ethereum, Polygon, and XRP. Meanwhile, the bank has seen rapid growth in its crypto-backed lending business, doubling its loan volume over the past 12 months.Back in August 2024, Sygnum formalized a $50 million syndicated Bitcoin-backed loan for Ledn. Since its founding in 2017, the digital asset bank has secured licenses in five jurisdictions and, following a $58 million funding round, surpassed a $1 billion valuation
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