Sygnum Bank, a Swiss digital asset-focused financial institution, has introduced a new feature that allows clients to use staked Solana (SOL) as collateral for multi-currency loans. This move caters to growing institutional demand and reflects the bank’s expanding crypto lending services, which have seen a doubling in loan volume over the past year.

Staked SOL as Collateral for Lombard Loans

Sygnum Bank has added staked Solana to its portfolio of tokens eligible for Lombard loans. This feature enables clients to access fiat liquidity in Swiss francs, euros, Singapore dollars, or U.S. dollars while continuing to earn staking rewards on their SOL holdings. According to the bank, this creates a unique dual-income potential, as users can earn staking rewards and access liquidity simultaneously.

The bank highlighted that this lending option is low-cost because the staking rewards generated help cover a significant portion of the loan fees. This makes it an attractive solution for clients seeking to maximize their crypto assets’ utility.

Expanding Crypto Lending Services

Over the past 12 months, Sygnum Bank has seen significant growth in its lending business, with loan volumes doubling during this period. The addition of staked Solana as collateral further expands the bank’s Lombard loan collateral pool, which already includes major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), unstaked Solana, Polkadot (DOT), Ripple’s XRP, and several other altcoins.

Benedikt Koedel, Head of Credit & Lending at Sygnum Bank, emphasized that the integration of staked Solana aims to address a key client need: optimizing yield while maintaining liquidity.

Growing Institutional Interest in Crypto

Institutional adoption has been a driving force behind Sygnum’s growth in the crypto lending space. A survey conducted by the bank in late 2024 among over 400 high-net-worth investors revealed increasing confidence in the long-term potential of cryptocurrencies. The survey attributed this optimism to the growing demand for portfolio diversification and macroeconomic hedging opportunities. Additionally, participants expressed interest in the sector due to expectations of higher returns and its alignment with broader financial trends.

Key Takeaways for Investors

The ability to use staked assets like Solana for loans represents a significant advancement in crypto-finance. Here are some key benefits for investors:

  • Dual-income potential: Access fiat liquidity while continuing to earn staking rewards.
  • Cost efficiency: Low-cost loans as staking rewards help offset fees.
  • Portfolio optimization: Use staked assets without selling them, maintaining exposure to potential upside.

As institutional interest in cryptocurrency continues to grow, innovative financial products like Sygnum Bank’s staked SOL collateral loans are likely to play a significant role in shaping the future of crypto lending and investment strategies.

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