Sygnum Bank is now allowing clients to use staked SOL as collateral for multi-currency loans, as institutional demand drives a doubling in its crypto lending volume.
Swiss digital crypto-friendly bank Sygnum has added staked Solana (SOL) to its portfolio of tokens eligible as collateral for Lombard loans, allowing clients to access fiat liquidity while continuing to earn staking rewards.
In a Thursday blog announcement, the Swiss bank said the new feature applies to loans in Swiss francs, euros, Singapore dollars, and U.S. dollars. The new update allows Sygnum clients to unlock liquidity from their staked Solana holdings while continuing to earn staking rewards, creating âdual-income potential from a single crypto asset,â the bank said.
Sygnum also noted that Lombard loans that pledge staked SOL as collateral are âlow-cost because the generated staking rewards are used to cover the majority of the fees.â
The move comes as Sygnumâs lending business has seen significant growth as its loan volume doubled over the past 12 months, the press release reads. The latest addition expands Sygnumâs Lombard loan collateral pool, which already includes Bitcoin (BTC), Ethereum (ETH), unstaked SOL, Polkadot (POL), Rippleâs XRP (XRP) and other altcoins.
Benedikt Koedel, head of credit & lending at Sygnum Bank, said the addition of staked Solana as collateral aims to meet a âkey client need to optimise yield while maintaining liquidity.â
In November 2024, a Sygnum survey of over 400 high-net-worth investors found growing confidence in cryptoâs long-term potential, driven by demand for portfolio diversification and macroeconomic hedging. The report linked this optimism to expected higher returns and a broader âmegatrendâ fueled by strong interest in the sector.